Beat together the softened cream cheese in a large bowl until creamy. Mix in the powdered sugar and vanilla extract.

Melt the white chocolate chips in a microwave-safe bowl, heating in 20-second intervals until smooth. Cool slightly before mixing with cream cheese mixture.

Stir in the crushed graham crackers until evenly mixed. Gently fold in the whipped topping.

Refrigerate the cheesecake mixture for 30-40 minutes or until firm. Roll into 1-inch balls and place on a baking sheet.

Melt the red and green candy melts in separate bowls according to package instructions for coating.

Optionally, decorate with holiday sprinkles before the coating sets.