In a mixing bowl, combine softened cream cheese and butter.
Beat the mixture on medium speed until smooth and creamy.
Gradually add powdered sugar, mixing well after each addition.
Scrape down the sides of the bowl to ensure even mixing.
Add vanilla extract and mix until fully incorporated.
If the frosting is too thick, add milk one tablespoon at a time until desired consistency is reached.
Continue mixing for another minute to ensure fluffiness.
Use immediately or store in the refrigerator until ready to use.
When ready to frost, re-whip the mixture if it has been chilled.
Spread or pipe the frosting onto your favorite baked goods.