Combine the cream and milk in a medium saucepan. Bring to a simmer over medium heat. Add the cinnamon sticks and the vanilla. Remove from the heat and let sit for 30 minutes to infuse.

Remove the cinnamon sticks and vanilla bean pods (if using) from the cream/milk.

Add the cold water to a small bowl. Sprinkle the gelatin on top and let sit to soften - about 5 minutes.

Re heat the saucepan with the cream/milk mixture until the cream/milk is very warm - not simmering but you want it warm. turn off the heat, remove the pan and add the gelatin. Stir until the gelatin completely dissolves. Divide the panna cotta evenly between 8 small glasses or bowls. Refrigerate for 2 to 4 hours or overnight to set.

In a large saucepan, add the apple cider. Over high heat, bring the mixture to a boil. Reduce to a simmer. Add the mulling spices and simmer for 20 minutes. Remove the mulling spices and bring the apple cider to a boil. Boil for 30 - 40 minutes or until the apple cider is reduced to about 21/2 cups. Add the demerara sugar and stir until the sugar is completely dissolved. Remove from heat and cool. Store in a covered container in the refrigerator.

For the compote:

In a medium saute pan, melt the butter and add the diced apples. Cook for 4 minutes until apples are softened. Add the apple cider syrup. Let cool for 10 minutes.

Spoon a small amount of the compote on top of each panna cotta and serve!