The great thing about frosting is that it is easy to adjust based on your results. Add extra icing sugar if it's too soft!
Beat cream cheese in the bowl of your stand mixer fitted with a paddle attachment until smooth, for about 3 minutes. Make sure to beat the cream cheese well before adding butter to avoid any lumps.
Slowly add in your butter and beat for another two minutes. Once smooth, make sure to scrape down the sides and bottom of the bowl with a rubber spatula!
At low speed, add icing sugar until fully incorporated. Add vanilla extract. Once mixed, beat for two minutes at high speed to remove any lumps.