Step 1: In a large bowl, dissolve the cranberry gelatin in 1 cup of boiling water. Stir until the gelatin is completely dissolved. Add 1 cup of cold water and stir again.
Step 2: Gently fold in the fresh cranberries and sugar, mixing evenly. Pour the mixture into a 9x13-inch dish, then refrigerate for at least 2–3 hours, or until the Jello is firm.
Step 3: In a medium bowl, beat the softened cream cheese and powdered sugar until smooth and well combined. Add the whipped topping and continue mixing until the mixture is fluffy and smooth.
Step 4: Once the Jello has set, spread the cream cheese topping evenly over the chilled Jello layer. Smooth it out to cover the entire surface.
Step 5: Refrigerate the salad for an additional 1–2 hours to allow the layers to firm up and meld together. Once chilled, slice into squares and serve cold.