Start by ensuring your cream cheese is at room temperature. Chill your heavy whipping cream until ready to use.
In a mixing bowl, add the softened cream cheese. Beat it on medium speed until smooth and creamy, about 1-2 minutes.
Gradually add the powdered sugar to the cream cheese, mixing on low speed to avoid a sugar cloud. Increase speed to medium and beat until well combined.
Add the vanilla extract to the mixture and beat until fully combined. The frosting should be thick but spreadable.
In a separate chilled bowl, whip the heavy cream on medium-high speed until soft peaks form. Be careful not to overwhip.
Gently fold the whipped cream into the cream cheese mixture using a spatula, maintaining the airy texture.
Once combined, spread the frosting on your cupcakes or use a piping bag to create swirls.