Preheat your oven to 350° and grease a 9×13 baking dish.
MAKE THE CAKE LAYER: In a large mixing bowl, combine the dry red velvet cake mix with one egg and melted butter until combined. Evenly press the mixture into the greased baking dish.
Bake the cake mixture for 15 minutes. Allow the cake to cool completely.
MAKE THE CREAM CHEESE LAYER: Beat the softened cream cheese and powdered sugar in a large mixing bowl with an electric mixer until smooth.
Fold in 8 ounces of the whipped topping into the cream cheese mixture until combined.
Spread the cream cheese mixture evenly across the top of the cooled cake layer. Refrigerate the cake while you prepare the next layer.
MAKE THE PUDDING LAYER: In a separate bowl, whisk together the dry pudding packets and cold milk until smooth. Stir in ¼ cup of whipped topping and green gel food coloring until desired color is achieved.
Remove the cake from the refrigerator and spread the vanilla pudding layer across the top of the cream cheese layer.
ADD WHIPPED CREAM AND SPRINKLES: Spread the remaining whipped topping over the top of the vanilla pudding layer. Garnish with red heart sprinkles if desired.
Chill in the refrigerator for at least 1-2 hours or overnight before serving.