In a medium bowl, use an electric mixer to beat the softened cream cheese until smooth.

Add the powdered sugar and vanilla extract to the bowl, and continue to mix until well combined and creamy.

Use a rubber spatula or spoon to gently fold in the thawed Cool Whip until fully incorporated. Be careful not to overmix, as this can cause the mixture to become too runny.

Cover the bowl with plastic wrap and refrigerate the dip for at least an hour, or until it has firmed up and is ready to serve.

When you're ready to serve, slice or chop a variety of fresh fruit and arrange it on a platter or in bowls.

Serve the fruit dip with the fruit, either in a separate bowl or drizzled over the top.