Pour the milk into a bowl; sprinkle the gelatine over the milk. Allow mixture to sit until the gelatine softens; about 5 minutes.
Combine the cream and 1/4 cup sugar in a saucepan over medium heat. Stir in the gelatine mixture then cook and stir until gelatine dissolves completely; about 3 minutes. Add the vanilla essence. Pour the mixture evenly into ramekins; cover and chill at least 4 hours.
To make the strawberry sauce, combine the strawberries, 2 teaspoon vanilla essence, 1/4 cup sugar and water in a saucepan over medium heat. While the mixture cooks crush the strawberries with a potato masher. Simmer the sauce until the sugar has dissolved and the sauce has thickened; about 10 minutes. Cool.
Remove chilled ramekins from the refrigerator shortly before serving. Dip the bottoms of the cups in warm water to help loosen the custard. Run a thin-bladed knife around the inner edge of each ramekin to loosen the dessert; turn onto a dessert plate to remove. Spoon strawberry sauce over pannacotta to serve.