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Boil the water and sugar over medium-high heat. Once boiling, add in the cranberries.
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Reduce heat, simmer for 10 minutes, stirring regularly.
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While waiting, mix together cream cheese and butter until smooth.
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Once the cranberries are done, remove from heat and let cool to room tempterature.
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When the cranberries are room temperature, combine them with the cream cheese and butter mixture. Set aside a small portion of the cranberries to top the dip with if desired.
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Serve with graham crackers or other dippers.