Soften the dairy. Bring cream cheese and butter to room temperature. They should be soft enough to press a finger into without resistance.
Cold ingredients lead to lumps.
Cream the base. In a large bowl, beat the butter with a hand mixer until smooth and fluffy, about 1 minute. Add the cream cheese and beat until fully combined and creamy.
Add sweetener gradually. Sift the powdered keto sweetener if it looks clumpy. Beat it in on low speed, a little at a time, to avoid a dust cloud and to keep the frosting smooth.
Flavor it. Mix in vanilla extract and a tiny pinch of salt.
If you like a hint of tang, add 1–2 teaspoons of lemon juice or a little zest.
Adjust texture. Add 1–3 tablespoons of heavy cream, 1 tablespoon at a time, beating after each addition. Stop when the frosting is silky and spreadable but still holds peaks.
Whip to finish. Beat for 30–60 seconds more to aerate slightly. Don’t overmix—too much air can make it loose.
Use or chill. Frost cooled cakes or cupcakes right away, or chill the frosting for 15–20 minutes if you want it firmer for piping.