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Beat cream cheese and 1/4 cup of the sugar in large bowl until smooth and creamy.
Beat heavy cream, remaining 1/4 cup sugar and vanilla in large bowl with electric mixer on medium speed until stiff peaks form. Add 1/2 of the whipped cream mixture to cream cheese mixture; stir until well blended. Gently stir in remaining whipped cream mixture. Cover.
Refrigerate until ready to serve.