Replying to reader comments?

Hello,
I’ve just started a new blog. I’ve recieved some really lovely comments for my first post and would love to be able to reply to them on my blog. Is there a way to do this? Maybe a plugin? I would also like it if the person could get an email notification when I replied. Is there a way to do this too? Either in one plugin all together or in two separate ones?
Thanks in advance for the help!