Soak the gelatin sheets in cold water until softened. Meanwhile, measure out all the ingredients.
In a medium saucepan, combine the heavy cream, milk, sugar, and vanilla extract. Heat over low heat, stirring until the sugar is completely dissolved. Do not boil.
Add the ground poppy seeds to the cream mixture and stir well to ensure they are evenly distributed.
Remove the saucepan from the heat and stir in the softened gelatin sheets until completely dissolved. Let cool slightly.
Pour the mixture into glasses or molds, ensuring an even layer in each.
Allow the panna cotta to cool to room temperature, then refrigerate for at least 4 hours, or until set.
Before serving, sprinkle with poppy seeds or garnish with poppy seed cream, if desired.
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