01 - Set the oven to 400°F and prepare a baking sheet lined with parchment paper.
02 - Combine cranberries, 1/4 cup sugar, and water in a small saucepan. Cook over medium heat for 5 to 7 minutes, stirring occasionally until cranberries burst and thickened. Remove from heat and cool.
03 - In a bowl, beat softened cream cheese with 2 tablespoons sugar and vanilla extract until smooth.
04 - Unroll puff pastry on a lightly floured surface and cut into 8 rectangles.
05 - Transfer rectangles to the baking sheet and score a 1/2-inch border around each without cutting through the base.
06 - Optionally brush the scored borders with beaten egg for a glossy finish.
07 - Spoon 1 tablespoon of cream cheese filling into the center of each rectangle, spreading gently within the border. Top with 1 tablespoon cranberry sauce.
08 - Bake in the preheated oven for 18 to 20 minutes, until the pastry is golden and puffed.
09 - While pastries cool, whisk powdered sugar and milk to create a glaze. Drizzle over cooled pastries and garnish with orange zest if desired.