Looking for a dairy free cream cheese frosting recipe that actually tastes good? This version is creamy, light, and full of flavor without butter or cream cheese. It’s perfect for red velvet cupcakes, carrot cake, cinnamon rolls, or any layer cake. This recipe is designed especially for cottage bakers who need a delicious frosting recipe made with shelf-stable ingredients.

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

Be sure to check out my other shelf-stable frosting recipes too.

Shelf Stable Buttercream Frosting: My original viral recipe!

Chocolate Shelf Stable Frosting: A rich, creamy chocolate version of this frosting.

How It’s Different From Traditional Cream Cheese Frosting

Regular cream cheese frosting is made with cream cheese, butter, and vanilla extract. It’s rich and tangy, but it also comes with challenges for cottage bakers.

Since most state cottage food laws don’t allow uncooked dairy products, using cream cheese or butter isn’t an option. Even for home bakers who don’t sell, traditional cream cheese frosting can be tricky because it softens quickly.

If you’ve ever tried to frost wedding cakes or tall cake layers with cream cheese frosting, you know it can be a nightmare to keep the top layer from sliding off. That’s why finding a stable dairy-free cream cheese frosting is so important.

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.
White chocolate chips for richness; for a true dairy-free version, use a brand like Enjoy Life. If your laws allow dairy, you can use any type of white chocolate chip here.
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 Tips

I’ve been using LorAnn Cheesecake flavoring for over 15 years, and it’s still one of my favorite ways to boost frosting flavor. It’s the easiest way to turn a basic frosting into a great recipe that customers love.

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.
Dairy-Free White Chocolate Chips: For a true dairy-free version, I recommend Enjoy Life brand. Smooth, creamy, and they melt beautifully. Grab them 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.
Melt and mix: Stir in melted white chocolate. To avoid clumps, add while warm and stream in while the mixer is running.
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

Creamy, flavorful, and cottage-food-friendly without dairy.

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Ingredients

▢ 1 cup shortening
▢ ¼ cup cold water plus more as needed
▢ 3 ½ cups powdered sugar
▢ 4 oz melted dairy-free white chocolate chips
▢ 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.
Pour in melted white chocolate, then beat until smooth. To avoid clumps, add while warm and stream in while the mixer is running.
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

Cottage food bakers: Most state cottage food laws do not allow uncooked dairy products like butter, cream cheese, or milk in frosting. This recipe is a safe, shelf-stable alternative. Check my full state-by-state cottage food guide here.

For a true dairy-free version, use Enjoy Life dairy-free white chocolate chips. If you can use dairy in chocolate, substitute any brand of white chocolate chips.

LorAnn Cheesecake Flavoring is my favorite addition and one I’ve used for over 15 years. It gives even traditional buttercream a delicious flavor boost.

Storage: Keep frosting in an airtight container at room temperature for up to 3 days. Refrigerate and re-whip before using if your kitchen is warm. Store in the fridge for up to 1 week or freeze for up to 2 months. Thaw and beat again before using to restore texture.

Pairings: This frosting is especially good with red velvet cupcakes, carrot cake, and dairy-free rolled sugar cookies.

Equipment: You can make this with a stand mixer, electric mixer, or handheld mixer. A piping bag works best for decorating cupcakes or cake layers.

More Cottage Food Friendly Frostings to Try

Each of these recipes is designed with cottage bakers in mind. They all store well at room temperature, save you from worrying about dairy allergies or food safety rules, and give your customers the creamy frosting they expect on their favorite desserts.

That’s why I’ve created several frosting recipes with simple ingredients that give you the best results while staying compliant.

Shelf Stable Buttercream Frosting: My original viral recipe!
Chocolate Shelf Stable Frosting: A rich, creamy chocolate version of this frosting.