COMBINE ice water and dry milk in large mixer bowl. Freeze bowl, milk mixture and beaters for 15 minutes. Combine gelatin and cold water in small bowl. Let stand for 3 minutes. Add boiling water; blend well. Cool to room temperature.
WHIP chilled milk mixture until stiff peaks form. Add gelatin mixture, sugar and vanilla extract. Whip just until blended.
NOTE: If whipped topping develops an airy appearance, simply stir vigorously to restore smooth appearance. For best results, prepare same day as serving.
Recipe makes 3 cups.