In a 3 quart sauce pan, dissolve gelatin in cold milk. Set pan over medium heat and heat until simmering, stirring frequently. while milk is heating, whisk together egg yolks and 1/4 cup sugar until light and pale yellow in color. Slowly add egg/sugar mixture to simmering milk.
whisking constantly. Let cook, stirring constantly, until smooth and thickened, about 3 minutes. Remove from heat transfer to a large bowl, and set aside, stirring occasionally, until warm not hot.
Beat egg whites until foamy.
Add 1 Tablespoon sugar and vanilla and continue beating until soft peaks form when the beaters are raised.