In a large bowl beat the cream cheese with an electric hand mixer (or by hand). Once the cream cheese is light and fluffy, beat in the sugar, pudding mix powder and vanilla extract.

Fold in the cool whip or whipped cream until combined.
Just before serving stir in the sprinkles (do not add in the sprinkle too far in advance or they will melt into the dip).
Serve with Nilla wafer cookies, animal crackers or fruits of choice for dipping. Enjoy!