Pour the Kool Aid powder into a measuring cup and add the cold water, stirring until the powder is fully dissolved and the mixture is vibrant and clear.
Transfer the flavored liquid into a blender and add the crushed ice on top.
Blend on high speed until the mixture becomes thick, slushy, and evenly combined, with a frosty appearance and no large ice chunks visible.
Pour the slushie into glasses, creating a colorful, icy mound topped with a little extra crushed ice or a wedge of fruit if desired.
Serve immediately with a straw or spoon, enjoying the cold, vibrant, semi-frozen treat.