Beat the butter with a stand mixer for a few minutes until light and creamy, using the paddle attachment. Add the cream cheese and vanilla extract and mix until incorporated. Make sure you scrape the sides of the bowl.

Finally add the powdered sugar. Mix this into the cream on low speed (or use a spatula) in a large bowl. Once the confectioners' sugar is incorporated, you can mix on high for a short time to get an airy and creamy result. Again: scrape the sides and bottom of the mixing bowl.

Taste the homemade frosting, if you like it sweeter you can add more powdered sugar. This will also make your cream firmer (with lots of extra sugar).

You can use the cream cheese frosting right away, or let it set in the refrigerator until it gets even firmer (or until you need it).