Beat the softened cream cheese and butter together until smooth and creamy. Gradually add the powdered sugar and vanilla, then continue beating until the mixture is light and fully combined.

Fold in the mini chocolate chips and the optional chopped pecans or walnuts. Cover the bowl and refrigerate for at least 1 hour, or until the mixture is firm enough to shape.

Place the chilled mixture on plastic wrap and shape it into a round Santa face, an oval face, or a cone-like Santa hat. If the mixture feels sticky, chill it for another 15-20 minutes and use lightly dampened or gloved hands.

Decorate the appropriate areas with red sanding sugar or sprinkles for Santa's hat. Add shredded coconut for the beard and hat trim, then use mini marshmallows for the pom-pom and additional trim.

Add chocolate chips or candy pieces for the eyes and other facial details. Refrigerate the decorated cheesecake ball until serving, and present it with graham crackers, vanilla wafers, pretzels, shortbread cookies, or fruit.