Preheat the oven according to the cake mix package directions and lightly grease a 9 x 13-inch baking pan.
Prepare the white cake mix according to the package instructions. Stir in 1 teaspoon of vanilla extract if you want extra flavor.
Pour the batter into the prepared pan and bake as directed on the box. Let the cake cool for 10 to 15 minutes, until it is warm but not steaming hot.
Use the handle of a wooden spoon or a thick straw to poke holes all over the warm cake, spacing them about 1 inch apart.
Slowly pour the condensed milk mixture evenly over the cake, focusing on the holes so the filling can soak in. Use a spatula to gently spread the filling across the top of the cake, then let the cake cool completely.
Refrigerate the cake for at least 1 to 2 hours so the filling can settle.
Add the thawed Cool Whip to a medium bowl and gently fold in a tiny amount of blue gel food coloring until it looks like ocean-blue water.
Spread the blue Cool Whip evenly over the chilled cake.
Sprinkle graham cracker crumbs over one side or corner of the cake to look like sand. Use a generous coating if needed to cover the blue topping.
Add Teddy Grahams as little beach people by placing some on strips of fruit roll-ups to look like beach towels.
Press a few Teddy Grahams into gummy rings to make floaties, then place them on the blue “water” side of the cake.
Add mini umbrellas to the graham cracker sand or press a few Swedish Fish into the blue Cool Whip to look like fish swimming.
Refrigerate the decorated cake for at least 1 hour before serving so the topping can set.