In a large bowl mix together the butter, cream cheese and vanilla until smooth and combined well.
Mix in the powdered sugar one cup at a time until well combined. Spread on your cooled cake or anything you like cream cheese icing on. This icing goes excellent with my Carrot Cake!
This icing recipe will frost an 8 or 9 inch layer cake or a 9x13 cake with a little left over for those icing lovers to add more to their slice of cake, or just for eating with a spoon like my fiance' likes to do.