Step 1: Place the white chocolate in a heatproof bowl. Bring a skillet of water to a simmer over medium heat. Turn off the heat, place the bowl in the hot water, and let it stand, stirring occasionally, until the chocolate is completely melted and smooth (careful not to let any water get in the bowl or the chocolate will seize and clump!). Remove the bowl from the water and let cool until tepid.
Step 2: In the bowl of a stand mixer or in a large bowl with a handheld electric mixer, beat the cream cheese and butter on high speed until completely smooth and creamy, about 1 minute (if you find little lumps in your frosting, continue to beat until no more lumps). Gradually beat in the confectioners’ sugar and salt mixing well after each addition and scraping down the sides of the bowl as needed. Beat in the tepid chocolate and then the vanilla just until combined (if you prefer a dense, creamy frosting, use the frosting immediately, for a lighter, fluffier frosting, beat it for 1 to 2 minutes longer).
Step 3: If the frosting seems too thin, refrigerate it until chilled through and thickened slightly.
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