Sprinkle the gelatin over the cold water and set aside to soften for 10 minutes. In a saucepan over medium-high heat, bring the milk just to the boiling point.

Whisk the egg yolks with the sugar and salt. In a steady stream, pour the hot milk into the egg yolks, whisking constantly.

Add the softened gelatin to the hot custard and stir until fully dissolved. Stir in the vanilla extract. Let the mixture cool to room temperature.

Preheat an oven to 350 degrees F (175 degrees C). Toast the coconut on a baking sheet until golden, about 4 minutes, stirring once or twice. (You may use a toaster oven for this step). Transfer to a plate to cool, reserving about 1 tablespoon toasted coconut for garnishing.

Whip the egg whites until medium-stiff peaks form; gently fold the egg whites into the cooled custard mixture.

Whip the cream until medium-stiff peaks form. Fold the cream into the custard mixture, along with the toasted coconut. Pour the Bavarian cream into serving glasses and chill for at least three hours before serving. Garnish with the reserved toasted coconut.