1/2 cup (4 ounces) block-style fat-free cream cheese 1/4 cup butter, softened 2 teaspoons vanilla extract 1/8 teaspoon salt 2 3/4 cups powdered sugar, divided
Place the cream cheese, 1/4 cup butter, 2 teaspoons of vanilla, and 1/8 teaspoon salt in a large bowl; beat with a mixer at medium speed until smooth. Gradually add 2 cups powdered sugar, beating at low speed until smooth (do not overbeat). Stir in the remaining 3/4 cup powdered sugar. Cover and chill 30 minutes. Spread frosting over top of cake.