Start by placing softened cream cheese in a mixing bowl. Using an electric mixer, beat it on medium speed for about 2 minutes until it's smooth and fluffy.

Gradually add powdered sugar and vanilla extract to the whipped cream cheese. Mix on low speed to prevent sugar from flying out, then increase to medium until fully combined.

In a microwave-safe bowl, place the white chocolate chips. Heat them in the microwave in 20-second intervals, stirring in between, until smooth and melted.

Gently fold the melted white chocolate into the cream cheese mixture using a spatula, mixing until no white streaks remain.

Stir in the crushed graham crackers and whipped topping into the creamy mixture, ensuring to maintain the lightness.

Transfer the combined mixture into the refrigerator and let it chill for about 30-40 minutes until firm but pliable.

Using a cookie scoop or hands, scoop out about 1-inch portions and roll them into balls. Place each ball on a parchment-lined baking sheet.

Melt the red and green candy melts and dip each cheesecake ball into the melted candy, fully coating them.

Let the coated cheesecake bites sit at room temperature for about 30 minutes until the candy coating hardens.