01 - Preheat oven to 350°F. Grease and line a 9x13-inch baking pan with parchment paper.
02 - Combine cake mix, eggs, oil, and water in a large bowl. Beat until smooth batter forms. Pour into prepared pan and bake for 25-30 minutes until toothpick inserted in center comes out clean. Cool completely.
03 - Break cooled cake into fine crumbs using hands or fork. Transfer to large mixing bowl.
04 - Beat softened cream cheese and powdered sugar (if using) in separate bowl until smooth and creamy.
05 - Add cream cheese mixture to cake crumbs. Mix thoroughly until completely combined and dough-like consistency forms.
06 - Scoop tablespoon portions and roll into smooth balls. Place on parchment-lined baking sheet.
07 - Freeze for 20-30 minutes until firm to touch. This prevents crumbling during coating.
08 - Combine white chocolate chips with coconut oil in microwave-safe bowl. Microwave in 20-second intervals, stirring between each, until completely smooth.
09 - Using fork, dip each chilled cake ball into melted white chocolate. Gently tap fork against bowl edge to remove excess coating. Place on clean parchment-lined sheet.
10 - Immediately sprinkle with red or pink sprinkles while chocolate is wet. Refrigerate for 30 minutes until coating is completely set.