Prepare the Ingredients: Make sure the cream cheese and butter are softened to room temperature. This ensures a smooth and lump-free frosting.
Beat the Cream Cheese and Butter: In a large mixing bowl, beat together the softened cream cheese and unsalted butter using an electric mixer or stand mixer. Start on low speed, gradually increasing to medium, and beat until the mixture is smooth and creamy (about 2-3 minutes).
Add the Vanilla Extract and Salt: Add 1 teaspoon vanilla extract and ¼ teaspoon salt to the mixture. Continue mixing on medium speed until combined.
Gradually Add Powdered Sugar: Slowly add 1 cup of powdered sugar at a time, beating on low speed after each addition to avoid a powdered sugar cloud. Once all the sugar is added, increase the mixer speed to medium-high and beat for an additional 2-3 minutes until the frosting is light, fluffy, and smooth.
Check Consistency: If the frosting is too thick, you can add 1-2 teaspoons of milk or cream to thin it out to your desired consistency. If it's too thin, add a little more powdered sugar until you reach the right texture.