Preparation:

1: Prepare the Cream Cheese Mixture

1. In a large mixing bowl, beat the softened cream cheese and powdered sugar until smooth and creamy.
2. Add the vanilla extract and mix well.

2: Fold in the Whipped Topping

1. Gently fold in the whipped topping until fully incorporated, creating a light and fluffy base.

3: Add the Mix-Ins

1. Fold in the mini marshmallows, drained crushed pineapple, halved maraschino cherries, and shredded coconut (if using).
2. Add chopped pecans or walnuts for extra crunch, if desired.

4: Chill the Fluff

1. Cover the bowl with plastic wrap and refrigerate for at least 2 hours to allow the flavors to meld and the fluff to set.

5: Garnish and Serve

1. Before serving, sprinkle the top with crushed candy canes, red and green sprinkles, and a few whole maraschino cherries for a festive touch.
2. Serve chilled in a large decorative bowl or individual dessert cups.