Prepare the Rhubarb Filling: In a small saucepan, combine the chopped rhubarb, 1/4 cup of sugar, and water. Cook over medium heat, stirring occasionally, until the rhubarb breaks down and thickens slightly (about 8-10 minutes). Remove from heat and let cool completely.

Prepare the Cream Cheese Filling: In a small bowl, beat the softened cream cheese, powdered sugar, and vanilla extract until smooth and creamy. Set aside.

Prepare the Pastry: Preheat your oven to 400°F (200°C). Line two baking sheets with parchment paper. Unfold the thawed puff pastry sheets onto a lightly floured surface. If necessary, gently roll them out slightly thinner into approximate 10x10 inch squares.

Assemble the Twists: Spread half of the cream cheese mixture evenly over the surface of the first puff pastry sheet, leaving a small border around the edges. Spoon half of the cooled rhubarb filling over the cream cheese layer. Repeat with the second pastry sheet.

Cut and Twist: Starting from the long side of the pastry, carefully roll the pastry sheet tightly into a log. Seal the edges with a little water if needed. Cut each log into 6 equal pieces (about 1 inch thick). Place them cut-side up on the prepared baking sheets.

Bake: Whisk the egg with milk/water to create an egg wash. Brush the tops of the twists lightly with the egg wash and sprinkle generously with the remaining 2 tablespoons of sugar. Bake for 18-20 minutes, or until golden brown and puffed.

Cool and Serve: Allow the Danish twists to cool slightly on the baking sheet before transferring them to a wire rack. Serve warm or at room temperature. A light glaze (powdered sugar and milk) can be drizzled on top if desired.