This dairy-free cream cheese frosting is so smooth and creamy, that you would never know its made without using butter or cream cheese. It’s perfect for red velvet cupcakes, carrot cake, cinnamon rolls, or layer cakes.

Why You’ll Love This Frosting
- Completely dairy-free and allergy friendly
- Light texture that isn’t greasy
- Cheesecake-style flavor that tastes great
- Works great for piping and icing

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Recipe Update: This recipe was re-tested and updated in July 2026. The original recipe had white chocolate. It has been removed to create a smoother frosting and prevent the grainy texture some readers experienced.
How It’s Different From Traditional Cream Cheese Frosting
Traditional cream cheese frosting is made with cream cheese, butter, powdered sugar, and vanilla extract. It has a soft, creamy texture, but it can become too soft and difficult to work with.
This is especially frustrating when frosting tall layer cakes or wedding cakes because the layers can shift or slide. This dairy-free version is designed to be more stable while still giving you that sweet, tangy cream cheese flavor.

A Note About Cottage Food Laws
If you’re selling under cottage food laws, most states limit the use of uncooked dairy like butter, cream cheese, and milk in frosting. That’s why this recipe is such a good option. It uses shelf-stable ingredients while still delivering on taste. Check my full state-by-state cottage food guide to learn what’s allowed where you live.
Ingredients Overview
- Shortening and water whipped together for a lighter, less greasy texture. Some bakers also use vegan margarine like Earth Balance or vegan butter sticks for flavor, but shortening gives the best results for stability.
- Powdered sugar, also called confectioner’s sugar or icing sugar, for sweetness and structure. Add more powdered sugar if you need a stiffer frosting for piping cakes or cupcakes.
- Cheesecake pudding mix for flavor and body.
- Cheesecake flavoring for that tangy cream cheese taste. A splash of vanilla extract works too if you don’t have flavoring on hand.
- Salt to balance out the sweetness and help create the perfect balance.
Allyson’s Tip
I’ve been using LorAnn Cheesecake flavoring for over 15 years, and it’s still one of my favorite ways to add more flavor to frosting. LorAnn Cheesecake flavor is the main flavoring in this Dairy Free Chream Cheese Frosting.

Recommended Tools and Ingredients
For best results with this dairy free cream cheese frosting recipe, here are a few of my favorite products. These are affiliate links, which means I may earn a small commission at no additional cost to you.
- LorAnn Cheesecake Flavoring: A little goes a long way and it instantly gives any frosting that cheesecake-like tang. Shop it here.
- Instant Cheesecake Pudding Mix: The secret ingredient that makes this frosting taste like traditional cream cheese frosting but stays cottage-food-friendly. Find it here.
- Frosting Storage Tubs: My favorite tubs for storing a lot of frosting. They’re sturdy, airtight, and perfect for small batch or big cake layers. See them here.
Step-by-Step Instructions
- Whip it up: Beat shortening and water together until fluffy. This step makes the base light instead of heavy. You can use a handheld mixer and a large mixing bowl or a stand mixer with a paddle attachment.
- Add the sugar: Mix in powdered sugar and pudding mix on low speed until smooth.
- Flavor it: Add cheesecake flavoring and a pinch of salt. Taste and adjust until it’s just right.
- Adjust the texture: If you like it thinner, add water a spoonful at a time until it spreads the way you want. For a thicker batch, add more powdered sugar.

Shelf Life
- Keep in an airtight container at room temperature for up to three days
- Refrigerate and re-whip before using if your kitchen is warm
- Store in the fridge for up to a week or freeze for up to two months. Thaw and beat again before using to restore texture

Dairy Free Cream Cheese Frosting Recipe
Ingredients
- 1 cup shortening
- ⅓-1/2 cup cold water start with ⅓, add more if needed
- 3 ½ cups powdered sugar
- 1 tablespoon instant cheesecake pudding mix
- 1 teaspoon LorAnn cheesecake flavoring
- ¼ teaspoon salt
Instructions
- In a stand mixer with the whisk attachment, beat shortening and water until light and fluffy, about 2–3 minutes.
- Add powdered sugar and pudding mix, mixing on low speed until combined.
- Mix in cheesecake flavoring and salt. Taste and adjust.
- If you prefer a thinner frosting, add water one tablespoon at a time until desired texture is reached. For a thicker frosting, add more powdered sugar.
Notes

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Get 26 shelf-stable frosting recipes you can use for cakes, cupcakes, cookies, and more!
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Jan Hall says
Thank you so much for sharing all this information for newbies.
Doris says
I have been looking for something that has stability but taste great. Butter and cream cheese are so expensive. Thank you
Julie Busath says
How do you get it to not be grainy?
Meghan Bowman says
I really want to love this recipe! I'm not sure if I'm doing something wrong, but it has always turned out grainy, and not a real strong cream cheese flavor (although I could add more flavoring, I just didn't want to overdo it). It also isn't the easiest to frost a cake with. I did get good feed back on some cupcakes that I used it on though. Please, do you have any advice on how to improve the texture?
Better Baker says
Thank you for letting me know about the grainy texture. I retested the recipe and found that the white chocolate could cause small hardened bits when it came into contact with the other ingredients. I have updated the recipe and removed the white chocolate for a smoother, more reliable frosting.
Better Baker says
Thanks for letting me know about the grainy issue. I've updated the recipe and omitted the white chocolate for a smoother frosting.
Brenda says
How much frosting does this make?
Cindy says
Can I add cocoa powder and make this chocolate? If so how much would you recommend adding?
Cindy says
I still found this recipe to be grainy even without the white chocolate. My thought is that the pudding mix isnt dissolving easily in the cold water when its already mixed with shortening. I mixed the pudding mix with water and then added it. That seemed to work better.