Preheat the oven to 350°F. Grease and flour a bundt cake pan or spray generously with baking spray.
In a large mixing bowl, combine the strawberry cake mix, instant vanilla pudding mix, crushed freeze-dried strawberries, milk, vegetable oil, and eggs. Using an electric mixer, beat on medium-high speed for about 2 minutes until the batter is smooth and well combined.
Pour the batter into the prepared bundt pan. Gently tap the pan on the counter once or twice to release any air bubbles.
Bake for 40–45 minutes, or until a toothpick inserted in the center comes out clean.
Allow the cake to cool in the pan for about 10 minutes, then carefully turn it out onto a wire rack to cool completely.
In a small bowl, whisk together the confectioners’ sugar, 2 tablespoons of milk (or cream), and vanilla extract until a thick but pourable glaze forms. If the glaze is too thick, add a little more milk. If it’s too thin, add more powdered sugar.
Drizzle the glaze over the cooled cake. Let the icing set before slicing and serving.