Step 1: Prepare the Cranberries
1. Cook the Cranberries: In a medium saucepan, combine the cranberries, sugar, and water. Bring to a boil over medium heat. Cook for about 10 minutes, or until the cranberries burst and the mixture thickens. Remove from heat and let cool completely.

Step 2: Mix the Cream Cheese
1. Beat the Cream Cheese: In a large mixing bowl, beat the softened cream cheese until smooth.
2. Add Whipped Topping: Fold in the whipped topping and sweetened condensed milk until well combined.

Step 3: Combine Ingredients
1. Add Cranberry Mixture: Once the cranberry mixture has cooled, fold it into the cream cheese mixture.
2. Incorporate Fruits and Nuts: Gently stir in the mini marshmallows, chopped pineapple, and nuts (if using). Add vanilla extract and mix until everything is well combined.

Step 4: Chill
1. Refrigerate: Transfer the salad to a serving bowl and cover. Refrigerate for at least 2–3 hours, or until chilled and set.

Step 5: Serve
1. Garnish and Enjoy: Before serving, you can garnish with additional whipped topping or fresh cranberries if desired. Serve chilled.