First, mix together whipped cream cheese & cool whip in large bowl with a spatula
Then add vanilla. Add 5 drops to 1/8 cup of whole milk and add milk to bowl. Mix to incorporate. Adding the color to the milk makes it easier to spread out the color.
Add powdered sugar and whisk in gently until incorporated and is smooth.
Mix the other 1/8 cup of milk with 5 more drops of food dye and whisk to incorporate. If you want it sweeter, here is when you could add extra sugar too.
Lastly, move to serving bowl, if desired and add sprinkles!