In a medium bowl, beat your softened butter until lightly whipped.
Add the sifted icing sugar and beat to combine. Once the mixture starts to come together, add the cream cheese and vanilla.
Beat on a medium low setting until well combined and creamy. Now its ready to use.
Notes
You can adjust the amount of cream cheese to taste, but be aware that if you add too much, you may need to add extra powdered sugar to thicken. Alternatively, if you want to thin out the frosting, you can use some milk towards the end of mixing to reach the desired consistency.