In a mixing bowl, combine the softened cream cheese and unsalted butter. Using an electric mixer or whisk, beat together until smooth and creamy.
Gradually add the powdered sugar, one cup at a time, mixing well after each addition. Stop to scrape down the sides of the bowl as necessary to ensure everything is well combined.
Once all the powdered sugar is incorporated, mix in the vanilla extract.
If the frosting is too thick, add the milk one tablespoon at a time until you reach the desired consistency. Mix until smooth.
Use the cream cheese frosting to frost your favorite cakes, cupcakes, or cookies.
For a lighter texture, whip the frosting for an additional minute after mixing in the powdered sugar.
If you prefer a tangier flavor, consider adding a little lemon juice or zest to the frosting.
This frosting can be stored in the refrigerator for up to one week. Make sure to rewhip it before using again if it has been refrigerated.