Put cream cheese, and butter into mixer and blend for 1-2 minutes on medium speed until it's all mixed together well.
Add vanilla and beat for an additional 1-2 minutes.
Set the speed to low and then add powdered sugar, one cup at a time, blending between additions until the until frosting is light and creamy but with stiff peaks.
This recipe makes enough frosting to fill, crumb coat, and decorate a two layer 8 inch cake or to frost two dozen cupcakes. To color the frosting I use gel color.