First, in a spacious mixing bowl, simply whisk together the milk and the vanilla pudding mix until it's well combined. Let it sit for a few minutes to allow the pudding to set and thicken.
Next, add the softened cream cheese to the set pudding mixture. Beat them together using a hand mixer or whisk until the mixture is beautifully smooth and any lumps of cream cheese have disappeared. This might take about 5-10 minutes.
Stir in the vanilla extract, then gradually add the green food coloring. Beat again until the vibrant green color is evenly distributed throughout the dip.
Gently fold in the thawed Cool Whip until the mixture is light, fluffy, and just combined. Be careful not to overmix!
Transfer your festive Grinch dip to a serving dish. Just before you're ready to serve, sprinkle those cheerful heart sprinkles over the top.
Serve with your favorite dippers like apple slices, graham crackers, or pretzels, and enjoy this fun holiday treat!