In a large mixing bowl, combine the pudding mix, powdered sugar, milk, and vanilla extract.
Beat on medium-high for about 2 minutes until smooth and creamy.
Add the thawed Cool Whip and beat on medium speed until fully incorporated, creating a light and fluffy frosting.
Use the frosting immediately or store in an airtight container in the fridge until ready to use.
Spread over cakes, cupcakes, or use as a dip for fresh fruit.
Store any frosted desserts in the refrigerator due to the Cool Whip content for freshness.