Beat the cream cheese and powdered sugar in a large bowl.
8 ounces cream cheese, 1 cup powdered sugar
Add vanilla extract to cream cheese mixture.
1 tsp. vanilla extract
Put the semi-sweet chocolate chips in a microwave safe bowl and microwave in 15 second intervals, stirring in between each interval, until the mixture is melted and smooth.
1 cup semi sweet chocolate chips
Add the melted chocolate to the cream cheese mixture. Mix to combine.
Add Cool Whip and stir again.
1 ½ cups Cool Whip
Fold in Heath toffee bits and a half cup of M&Ms.
¾ cup Heath toffee bits, ¾ cup red and green M&Ms
Transfer mixture to a serving bowl, then top with the remaining M&Ms and festive sprinkles
2 tbsp. Christmas sprinkles
Notes
If the dip is too thick, you can thin it out with 1-2 tbsp. of milk or additional Cool Whip.
Serve with pretzels, graham crackers, marshmallows, animal crackers, fresh fruit or your favorite holiday cookies.