Beat the cream cheese until smooth and creamy. Add the powdered sugar and beat until combined.
Mix in the marshmallow cream and vanilla.
Fold a large spoonful of the thawed whipped topping into the dip mixture. Then, fold the remaining whipped topping into the dip until completely combined.
Divide the dip into 3 small bowls. Add red food coloring to one and pink food coloring to the. Leave one bowl plain white. Carefully mix until the colors are incorporated. Do not overstir as the dip will deflate.
Add small dollops of the differently colored dip to a bowl. Then, run a knife or bamboo skewer around in the dip to create swirls. Do not overstir or the dip will become burgundy.
Top the dip with assorted sprinkles.
Serve with your choice of cookies (like vanilla wafers, butter cookies, shortbread cookies, sugar cookies, and/or gingersnaps) or fruit.