Using a hand mixer, mix the softened cream cheese.
Heat the water to a boil in the microwave or over medium-high heat on the stovetop. Once the water is boiling, dissolve the Jello powder in the boiling water.
Add the Jello mixture to the cream cheese and mix well until most of the cream cheese lumps are dissolved.
Add the 7 Up and stir.
Chill the gelatin mixture in the refrigerator for 60-90 minutes or until partially set up.
Stir the drained pineapple and cottage cheese (if using) into the chilled 7-Up Jello.
Gently fold in the whipped topping using a rubber scraper. Be careful to keep the whipped topping as fluffy as possible by bringing the Jello salad from the bottom and folding it over the top.
Transfer to a jello mold or baking dish, if desired. Cover with plastic wrap and place the Jello Salad back in the fridge. Chill it until firm, which will take at least 3 hours. If you have time for extra chilling, overnight works well.