Combine the beef gelatin and 1/2 cup of the water in a stand mixer, fitted with the whisk attachment. Stir to combine and set aside to hydrate.
Add the honey and the remaining water into a saucepan. Bring to a simmer and allow to simmer for 20 minutes, or until it reaches the soft ball stage on a candy thermometer.
Slowly drizzle the honey mixture into the gelatin mixture. Run the mixer on low and continue to mix until they're well combined and light in color.
Add in the vanilla extract.
Add in the powdered sugar, one cup at a time, until all has been added. Whip the mixture on medium speed until it's light and fluffy.
Transfer the marshmalllow mixture into a well buttered baking dish. An 8x8 pan works great for this.
Allow the marshmallows to cool to room temperature. They can then be cut as desired. Toss the cut marshmallows with powdered sugar to prevent them from sticking together and store in an airtight container at room temperature.