Normally I just take the powder straight. It can be put under the tongue, fill your mouth full of water, swish and swallow. Or mix in a little thick nectar or applesauce. This way you also get the beneficial fiber.
I generally don't make water extracts unless I am primarily drinking it for taste. I love the taste of the tea with a little stevia. But hot teas in particular can destroy some properties. I never tried a cold water extraction, but again the fiber is also beneficial.