In a standing electric mixer fitted with the paddle attachment, or with a handheld electric mixer in a large bowl, mix the cream cheese and butter at low speed until incorporated. Add the sugar and vanilla. Increase the speed to high, and mix until light and fluffy, about 5 minutes, scraping down the sides of the bowl with a rubber spatula as needed.

Store in the refrigerator before using, until it is somewhat stiff, about 15 minutes. The frosting may be stored in the refrigerator for 3 days.