Place softened cream cheese in the bowl of your stand mixer and whip for about one minute. (I like to do it until all the lumps are removed). Add powdered sugar and mix well.
8 ounces cream cheese, 1/3 cup powdered sugar
Add Cool Whip and fold just until the two are well combined.
8 ounces Cool Whip
Separate the mixture into three bowls. Add one shade of food coloring to each bowl and stir until well blended.
Food coloring - pink
Combine the three colored mixtures into one bowl, making sure that they are side by side and not stacked.
Swirl the colors together with a butter knife until you get that perfect rainbow look. Be careful not to swirl too much or your colors will start to blend together into one.
Top with sprinkles just before serving and enjoy!
Unicorn sprinkles
Notes
If you forget to soften the cream cheese ahead of time, don't worry...it happens to the best of us! Just seal the wrapped cream cheese in a sandwich bag and place it in a bowl of warm water for about 5 minutes.
Wait to add the sprinkles until just before serving. That way they'll stay bright and you can avoid the colors bleeding into the dip.