01 - Set oven to 400°F and line a baking sheet with parchment paper.
02 - Combine cranberries, sugar, and water in a small saucepan; cook over medium heat for 5–7 minutes until berries burst and sauce thickens. Remove and cool.
03 - Beat cream cheese, sugar, and vanilla extract in a bowl until smooth.
04 - Unfold puff pastry onto a lightly floured surface and slice into eight rectangles.
05 - Place rectangles on the prepared sheet and score a 0.4-inch border around each without cutting through.
06 - Brush the scored borders with beaten egg for a glossy finish, if desired.
07 - Spoon approximately 1 tablespoon of cream cheese mixture into each pastry center, spreading gently within the border, then top with 1 tablespoon cranberry sauce.
08 - Bake for 18–20 minutes until golden and puffed.
09 - Mix powdered sugar with milk to create a glaze; drizzle over cooled pastries and garnish with orange zest if preferred.