Melt the white baking chips in a microwave-safe bowl in intervals of 30 seconds at 50% power, stirring in between, until smooth and glossy, about 2-3 minutes.

Add cream cheese, water, and vanilla extract to melted chips; mix until smooth and creamy.

Refrigerate the mixture for about 1 hour to firm up.

Shape the mixture into 1-¼ inch egg shapes and place on a parchment-lined baking sheet.

Roll each egg in colored sprinkles until fully coated.

Store in an airtight container in the refrigerator for up to two weeks.