Start by crushing about two thirds of your sugar cookies into coarse crumbs. You can do this by placing them in a sealed plastic bag and using a rolling pin to gently break them down. Press these crumbs into the bottom of a 9 by 13 inch baking dish to create your first layer. If you prefer a more solid crust, you can mix the crumbs with a little melted butter before pressing them down into the pan.
In a large mixing bowl, beat the softened cream cheese and butter together until the mixture is light and fluffy. Gradually add the powdered sugar and the alcohol-free vanilla extract, continuing to beat until the texture is perfectly smooth. Gently fold in half of the whipped topping using a spatula to keep the mixture airy. Spread this creamy layer evenly over the cookie base using an offset spatula.
In a separate bowl, whisk together the two packages of instant vanilla pudding mix and the cold milk. Continue whisking for about two minutes until the pudding begins to thicken properly. Let it sit for a moment to set slightly, then carefully pour it over the cream cheese layer in your dish. Use a spoon or spatula to smooth it out to the edges so every bite has a bit of pudding.
Take the remaining whipped topping and spread it gently over the pudding layer. It is important to be light-handed here so you do not disturb the pudding layer underneath. This creates that classic lasagna look with distinct white and yellow layers that look so beautiful when you finally slice into the dessert for your guests.
Take the remaining sugar cookies and crumble them over the top of the whipped topping. Add your red and green festive sprinkles and the mini white chocolate chips for a pop of holiday color. Cover the dish and refrigerate for at least four hours, or ideally overnight, to allow the cookies to soften slightly and the layers to set firmly for easy serving.
