In a large mixing bowl, combine the pudding mix, powdered sugar, milk, and vanilla extract. Beat with an electric mixer on medium-high speed for 2 minutes.
Add in the Cool Whip and beat on medium until combined.
Use the frosting immediately to top cakes or cupcakes. If you have any leftovers or plan to store it for later use, transfer the frosting to an airtight container and refrigerate until you’re ready to enjoy it. Be sure to keep any leftover cake or cupcakes in the refrigerator as well!