In a medium bowl, combine the thawed Cool Whip, powdered sugar, and vanilla extract.
Beat with an electric mixer on low speed until well combined and smooth. If needed, beat on medium speed for a minute to achieve a fluffier consistency.
Use immediately to frost cakes, cupcakes, or cookies.
Notes
This frosting is best used right away. It can be refrigerated for up to 3 days, but may lose some of its fluffiness.