- Line a 9x9-inch baking dish with parchment paper, including up the sides of the dish. Set aside. 
- In a medium bowl, mix together the graham cracker crumbs and sugar. Add the melted butter and stir until fully combined with no dry spots. 
- Press the crumbs firmly into the bottom of the lined baking dish in an even layer. Flatten the crust with the bottom of a glass. Place in the refrigerator to chill while you prepare the toppings. 
- To a large bowl, add cream cheese. Using a hand mixer on medium speed, beat the cream cheese until creamy (1-2 minutes).  
- Add confectioners' sugar and vanilla. Beat again until no lumps remain (about 1-2 minutes). 
- Using a spatula, gently fold in 2 cups of whipped topping. 
- Remove the crust from the refrigerator. Dollop the cream cheese mixture over the crust and spread into an even layer. 
- Place the pan back into the refrigerator to chill while you prepare the remaining ingredients. 
- To a separate mixing bowl, add pudding mix and milk. Beat with a hand mixer on medium speed for 1-2 minutes, or until all lumps are gone. Set aside for 5 minutes to allow the mixture to thicken. 
- Pour the butterscotch mixture on top of the cream cheese layer. 
- Place in the refrigerator to chill for 2 hours, up to overnight. 
- When ready, top with the remaining whipped topping, butterscotch sauce, and butterscotch chips. Serve chilled.