In a medium saucepan, combine cranberries with sugar and water. Bring to a boil over medium heat, then reduce to a simmer and cook for about 10 minutes, or until the cranberries burst. Remove from heat and allow to cool completely.

In a large mixing bowl, beat softened cream cheese on medium speed for 2-3 minutes until smooth and creamy.

Gently fold in the whipped topping and sweetened condensed milk until well blended.

Carefully fold the cooled cranberry mixture into the cream cheese mixture.

Stir in mini marshmallows, chopped pineapple, and any optional chopped nuts.

Transfer the mixture to a serving bowl, cover, and refrigerate for at least 2-3 hours.

Before serving, garnish with additional whipped topping or fresh cranberries.