Unwrap the Christmas Tree Cakes and place them on a cutting board. Use a knife or your hands to break them into small, bite-sized pieces. Set these aside.

In a large mixing bowl, add the softened cream cheese. Use a hand mixer on medium speed to beat the cream cheese until it is completely smooth and creamy.

Slowly pour the milk and vanilla extract into the cream cheese. Continue beating until the liquid is fully incorporated and the mixture is fluffy.

Add the broken cake pieces into the bowl. Use a rubber spatula to fold them gently into the cream cheese mixture, ensuring they are distributed evenly without mashing them into a paste.

Add the thawed whipped topping to the bowl. Gently fold it in using a 'down-across-up' motion to keep the air in the dip.

Once combined, transfer the dip to a serving bowl. Cover it with plastic wrap and refrigerate for at least 30 minutes.

Before serving, top the dip with plenty of festive sprinkles and sanding sugar to give it a bright holiday look.