In a small mixing bowl stir together the water & gelatin. Let stand for 10 minutes to allow the gelatin to bloom.
In a saucepan over low heat whisk together the milk, cream, salt & ½ cup of sugar. Heat until the sugar fully dissolves, ensuring the mixture does not boil.
Remove from heat. Whisk in vanilla & bloomed gelatin until incorporated.
Evenly divide mixture amongst 4 large or 8 small ramekins. Refrigerate until fully set, about 6 to 8 hours.
In a separate mixing bowl stir together strawberries, balsamic vinegar, orange zest & remaining sugar. Cover & refrigerate until ready to serve.
When ready to serve, evenly divide the marinated strawberries over the panna cotta & enjoy!