In a saucepan, combine fresh blueberries and granulated sugar. Heat over medium heat, occasionally mashing the blueberries, until you achieve a jam-like consistency (around 8-10 minutes). Remove from heat and let it cool to room temperature. For quicker cooling, transfer to a bowl and refrigerate.
In a mixing bowl, beat together the softened butter and cream cheese until light and fluffy. This forms the creamy, dreamy base of our dessert.
Gradually add in the powdered sugar to the cream cheese mixture, beating continuously until smooth. Introduce the vanilla extract and mix until well combined.
Gently fold in the cooled blueberry mixture, ensuring it's evenly distributed throughout the cream.
Sprinkle the crushed freeze dried blueberries over the top, gently pressing them into the mixture for a delightful crunch in every bite.
Transfer the mixture to a serving dish and refrigerate for at least 2 hours. Serve chilled and enjoy!