In a large mixing bowl, whisk together the instant vanilla pudding mix and 2 cups of cold milk for about 5 minutes until it thickens to a creamy consistency.

Gently fold in the thawed Cool Whip into the pudding mixture, then add powdered sugar and vanilla extract, folding until smooth and fluffy.

Layer half of the sliced strawberries evenly across the bottom of the graham cracker crust.

Spread half of the creamy Cool Whip and pudding mixture over the strawberries in the pie crust.

Repeat the process by layering the remaining sliced strawberries on top and then spreading the remaining creamy filling.

Cover the pie with plastic wrap and refrigerate for at least 2 hours to let it set.

Slice the pie into wedges and serve cold, garnishing with additional strawberries or Cool Whip if desired.