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Preheat the oven to 400°F.
Unfold puff pastry sheets, cut into 12 rectangles, and arrange on an ungreased cookie sheet with space in between.
Lightly score a border around each rectangle, poke holes in the center, allowing the border to rise.
Mix cream cheese, 2 tbsp sugar, and vanilla. Spread onto pastries within the border.
optional: Add sliced strawberries top of cream cheese.
Beat egg and water, brush a thin layer on the pastry border. Bake at 400°F for 12-18 minutes until golden brown.
Mix powdered sugar and heavy cream for frosting. Drizzle over cooled danishes on a baking rack after 10 minutes.