Beat room temperature butter in a stand mixer or with a hand mixer for 5 minutes until pale and light and doubled in volume. Add the cream cheese to the butter and beat for a minute until well combined.
Add half of the sugar to the butter and cream cheese, beating on low speed until combined before adding the next half.
Use a spatula to scrape down the sides of the bowl and add in the vanilla essence. Beat for a further minute until the frosting is fluffy.
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Notes
Let the Cream Cheese Frosting rest in the fridge for 30 minutes before using. This will let it thicken after being whipped.