Cool Whip cream cheese frosting is creamy yet fluffy frosting made with cream cheese, salted butter, powdered sugar, and whipped topping. Adding Cool Whip lightens up both the consistency and the sweetness, giving you a slightly lighter alternative. The key is ensuring the cream cheese and butter are softened to room temperature. Cream cheese Cool Whip frosting is one of my favorite frostings for red velvet cupcakes, but you can also use this for sheet cakes.