Put the apricots, sugar, and water in a small saucepan.  Bring to a boil and simmer the apricots for about 3 minutes, just until they soften but haven't broken down.  Remove the apricots with a slotted spoon and layer them at the bottom of your serving dishes or jars.

Add the brandy and lemon juice and boil the sauce for another 10 minutes or so, until it is reduced to a thick syrup.  Take it off the heat and stir in the vanilla.  Pour the syrup evenly over the apricots, about a tablespoon or so over each jar, don't drown the apricots.

Meanwhile make the panna cotta---Pour the milk and cream into a saucepan, and add the vanilla bean seeds and the bean itself.  Bring it up to a simmer.  Turn off the heat and let it steep for about 10 minutes.

Remove the vanilla bean pod, and add the sugar to the pan.  Reheat the mixture and stir, just until the sugar is completely dissolved.  Takeoff the heat.

Put 2 tablespoons of boiling water in a small glass and sprinkle the gelatin over it.  Let it sit for  a few minutes while the gelatin softens.

Stir the gelatin into the water until it is completely dissolved.  Whisk it into the hot milk and cream mixture and blend it well.

Carefully pour the mixture into the serving jars, filling to the top.  Try not to disturb the apricots too much.

Refrigerate until firm, about 4 hours.