Gather all ingredients on a clean workspace.
In a mixing bowl, add the softened cream cheese and butter.
Beat the cream cheese and butter together until smooth and creamy.
Gradually add the powdered sugar, mixing on low speed.
Increase the mixer speed to medium-high and beat until fluffy.
Scrape down the sides of the bowl to ensure all ingredients are combined.
Add the vanilla extract and mix until fully integrated.
If too thick, add milk one tablespoon at a time until desired consistency.
Taste and adjust sweetness by adding more powdered sugar if necessary.
Use immediately or store in an airtight container.