In a small bowl, place the gelatin and the cold water, then set it aside to bloom about 10 minutes.
In a large saucepan, combine the remaining sugar and water over low heat, occasionally stirring until the sugar has dissolved.
Add the gelatin and stir till dissolved.
Increase the temperature to medium heat and allow the mixture to cook on a low boil about 10 -15 minutes. You do not want it to start caramelizing, so make sure you watch the mixture. Do NOT stir at this point.
Remove the mixture from the heat and transfer it to a bowl or stand mixer and allow it to cool about 5 minutes.
Add the vanilla and let it beat on medium-high speed until the mixture is white and thick.
Spread some of the sugar onto a pan or parchment paper.
Transfer the marshmallows to a piping bag and pipe the shapes you want into the sugar.
Cover the tops of the marshmallows in additional sugar before they set.
Let them dry, dust off excess sugar if you want, and enjoy!