In a small bowl, whisk together half of the water (⅔ cup or 160g) with the vanilla. Pour in the gelatin powder and quickly whisk as the gelatin thickens. Set aside to bloom.
In a medium sized pot, add the other half of the water, the sugar, salt and the syrup. Stir with a wooden spoon and set over medium heat.
Cook the syrup until the temperature reaches 245-250F (no more than 250 F); if it’s boiling up, place a wooden spoon over the top of the pan (this breaks up the steam so the liquid won’t rise). As soon as the syrup reaches the correct temperature, turn off the heat and move the pan away from the source of heat. Let it cool for about 30 seconds.
Scrape the bloomed gelatin into the bowl of a stand mixer, affix the whisk attachment and pour in the hot syrup. Begin whisking on low, then work up to medium speed.
The marshmallow base will need to be whisked for about ten minutes, you’ll see it start out as a dark liquid then gradually turn into a lighter brown that’s foamy, then thicken into a marshmallow fluff (it sort of looks like a meringue). If you see bits of vanilla sticking to the sides, stop the mixer and use a rubber spatula to scrape it, then keep whisking. Stop the mixer when the marshmallow base is thick and pulls away from the sides of the bowl.
Grease a 9 inch square baking pan (for tall and thick marshmallows) or a 13 x 9 inch pan with canola oil. Scrape the marshmallow fluff into the pan (it will be sticky and messy - do your best) and then smooth it down into an even layer.
Cover the pan with aluminum foil and leave it at room temperature overnight (if you want a shorter period, put it in the fridge for 4 hours).
Once the marshmallow is firm, dust the top with powdered sugar and dust the countertop too and set the rest of the powdered sugar in a bowl. Flip the marshmallow from the pan onto the countertop. Oil the chef’s knife and slice the marshmallows into smaller squares, dip the squares into the bowl of powdered sugar to coat on all sides.
Store the marshmallows in an airtight container, they’ll keep for 3 weeks.