In a small saucepan, add cold water, sprinkling gelatin on its surface. Allow the gelatin to bloom for 3 to 5 minutes or until all of the gelatin granules have soaked-up liquid.
Over medium heat, whisk until gelatin has completely dissolved. Add sweetened condensed milk and stir until incorporated. Remove from heat.
Add whipped cream flavored vodka. Stir to mix. Transfer to a heatproof container with a pour spout such as a glass measuring cup. Set aside at room-temperature.
Prepare the Pink Layer Mixture
In the same small saucepan, add cold water and sugar. Again, sprinkle the contents of one gelatin packet on the surface of the water. Allow it to bloom for 3 to 5 minutes.
Over medium heat, whisk until gelatin and sugar have completely dissolved. Add sweetened condensed milk and stir until incorporated. Remove from heat.
Add peppermint schnapps and food coloring. Stir to mix. Transfer into another heat-proof container with a pour spout. Set aside at room-temperature.
Assemble the Shots
Beginning with the pink layer, add about 2 teaspoons to a 1 ½-ounce disposable shot glass. Place into the freezer for about 5 minutes or until the top of the gelatin is firm. You should be able to touch the top of the Jello with your finger and it should not stick.
Before pouring your next layer, assure that the white liquid it is at room temperature, which prevents bleeding of the colors into the other layers. Add enough of the white liquid to match the width of the pink layer. Again, place in the freezer for 5 minutes.
Continue this process for each layer until the gelatin reaches the top of the shot glass. Refrigerate for at least 1 hour.
Top with whipped cream, crushed candy canes and sprinkles just before serving.
Notes
Cool layers: Let each layer reach room temperature before pouring to prevent colors bleeding. Quick set: Freeze for a few minutes to firm layers before adding the next. Use a spout: Pour from a measuring cup for precise layering. Chill longer: Allow at least an hour in the fridge for the flavors to meld.