Combine crushed vanilla wafers and melted butter in a bowl until the mixture resembles coarse crumbs. Press the mixture firmly into the bottom of a 9×9-inch dish. Pop it in the refrigerator to set for about 15 minutes.

Beat cream cheese, powdered sugar, and vanilla extract in a mixing bowl until smooth and creamy. Gently fold in 1 cup of whipped topping until well combined, then spread this mixture evenly over your chilled crust.

Whisk together the coconut pudding mix and cold milk in a separate bowl. Keep mixing until you see it thicken, then fold in the shredded coconut. Spread this creamy coconut filling over the cream cheese layer.

Top with the remaining whipped topping, smoothing it out to create a beautiful surface. Sprinkle festive red and green sprinkles along with extra shredded coconut on top for that holiday cheer!

Refrigerate the lasagna for at least 4 hours, or until you're ready to slice and serve. This allows all the delightful layers to set perfectly, making every bite a joy!