In a microwave-safe bowl, break the white chocolate into small pieces and microwave in 20-30 second intervals until fully melted and smooth.

Add the diced dried cranberries, chopped pistachios, and optional vanilla extract to the melted white chocolate. Stir gently until combined.

Transfer the mixture into a shallow dish and cover it with plastic wrap. Refrigerate for about 30 minutes.

Once the mixture is firm, scoop out small portions and roll them into balls about 1 inch in diameter.

Roll each truffle in powdered sugar until well covered, then return them to a parchment-lined baking sheet.

Refrigerate the coated truffles for at least 15-20 minutes to set completely before serving.