Soften the cream cheese and butter, but don't let it get warm, just take the chill off.
In the bowl of a mixer, beat the cream cheese and butter together until creamy.
Slowly add the powdered sugar until completely combined.
Beat in the vanilla.
Keep refrigerated until ready to use.
Notes
This recipe should yield around 3 cups of frosting. Each serving is considered 3 Tablespoons. It is enough to frost the top of a 13x9 cake or around 16 cupcakes. You can get more or less cupcakes frosted out of it depending on how thick you pipe/slather it on. It never hurts to make a double batch to freeze for later use just in case you don’t have enough!
Be sure that your cream cheese and butter have been softened before beginning. Take them out of the fridge at least 20 minutes before making this recipe. Do NOT use the microwave to soften your cream cheese or butter. If you do not use softened cream cheese/butter you may end up with lumpy frosting.
Store homemade cream cheese frosting in a large ziptop bag or airtight container kept in the refrigerator for up to 1 week.
Cream cheese frosting will thicken as it sits in the refrigerator. I recommend covering it with a lid and setting it in the refrigerator for 20-30 minutes if you plan on piping it.