Start by placing your softened butter in a large mixing bowl and beat on medium speed until creamy and pale, about 2 minutes. This creates a fluffy base for your frosting.
Gradually add the sifted powdered sugar, a half cup at a time, beating on low to prevent dust clouds. Continue until the mixture is smooth, fluffy, and well combined, about 3 minutes.
Add the softened cream cheese and vanilla extract, then beat on low until fully incorporated. The mixture should be silky and slightly fluffy.
Pour in a tablespoon of milk or heavy cream and beat on medium speed. Check the texture—continue adding milk a teaspoon at a time until the frosting is glossy, smooth, and holds soft peaks.
If you want to color your frosting, add gel food coloring a tiny drop at a time, mixing thoroughly after each addition until you reach your desired hue. The frosting should remain glossy and vibrant.
Transfer the frosting into a piping bag fitted with your favorite tip. If not using immediately, cover with plastic wrap pressed directly onto the surface to prevent crusting.
Once ready to decorate, hold the piping bag and gently press to apply an even layer of frosting onto your cookies. The frosting should spread smoothly and settle into a glossy, soft finish.
Allow the frosted cookies to sit at room temperature for 30 minutes, letting the frosting set into a shiny, silky layer that melts softly on warm cookies.
