Ensure your cream cheese and butter are at room temperature.
In a mixing bowl, combine the softened cream cheese and unsalted butter. Beat together on medium speed until creamy, about 2-3 minutes.
Gradually add the powdered sugar, mixing on low speed to prevent a sugar cloud. Once incorporated, increase speed to medium and beat until fluffy.
Add the vanilla extract and mix until fully combined. Adjust sweetness by adding more powdered sugar if necessary.
Use a spatula or piping bag to frost your cakes or cupcakes as desired.