Cream Cheese Frosting Recipe 1 1 6 ounce package cream cheese 2 teaspoons vanilla 1/2 cup butter 4 cups powdered sugar (sifted) Beat together cream cheese, vanilla, and butter until fluffy. Slowly add powdered sugar 1/2 cup at a time until the frosting is the right thickness to spread on cake. Keep in the refrigerator until serving. The "tangy" cream cheese frosting flavor is a real hit on top of all kinds of cakes.