In a large mixing bowl, use an electric mixer to beat the softened cream cheese until it is smooth and creamy, scraping down the sides as needed.

Slowly add the sifted powdered sugar to the cream cheese mixture and beat until fully incorporated and no lumps remain.

In a separate, clean, chilled bowl, whip the cold heavy whipping cream on high speed until stiff peaks form (about 3-5 minutes).

Gently fold half of the whipped cream into the cream cheese mixture until just combined. Then, fold in the remaining whipped cream and the vanilla extract until the dip is light and fluffy. Be careful not to overmix, which can deflate the air.

Cover the bowl and chill the fruit dip in the refrigerator for at least 30 minutes before serving to allow it to firm up slightly.

Serve cold alongside your favorite fresh fruits, graham crackers, or pretzels.