In a large mixing bowl, beat the softened cream cheese, powdered sugar, and vanilla extract using an electric mixer. Blend until smooth and well combined.

Gently fold in the Cool Whip or whipped cream until the mixture becomes creamy and evenly incorporated.

Gradually add drops of green food coloring and mix until the desired shade of green is achieved.

Transfer the dip to a serving bowl and decorate with red heart sprinkles on top.

Chill briefly if desired and serve with cookies, pretzels, or fruit slices.