Ensure the cream cheese is fully softened to room temperature. This is crucial for a smooth, lump-free dip. Place the softened cream cheese into a large mixing bowl.

Using an electric hand mixer (or a stand mixer fitted with the paddle attachment), beat the cream cheese on medium speed until it is completely smooth and fluffy (about 1 to 2 minutes). Scrape down the sides of the bowl as needed.

Add the entire jar of Marshmallow Fluff and the vanilla extract to the bowl with the cream cheese.

Continue mixing on medium speed for 2 to 3 minutes until the marshmallow fluff and cream cheese are fully combined and the mixture is light, airy, and uniform in texture.

Adjust Sweetness and Consistency (Optional): If you desire a sweeter or stiffer dip, add the sifted powdered sugar and mix until just combined. If the dip seems too thick, add milk or heavy cream, one tablespoon at a time, mixing briefly until your desired consistency is reached.

Transfer the finished dip into a serving bowl. Cover the bowl tightly with plastic wrap and refrigerate for at least 30 minutes. Chilling allows the flavors to meld and the dip to firm up slightly.

Serve the Marshmallow Cream Cheese Fruit Dip cold alongside a generous platter of fresh fruit and cookies.