Place the softened cream cheese and butter in a large mixing bowl.
Beat with an electric mixer until smooth, creamy, and free of lumps.
Gradually add the powdered sugar and instant espresso powder, mixing on low speed at first to prevent the sugar from scattering.
Increase the mixer speed and beat until the frosting becomes light and fluffy.
Add the alcohol-free vanilla extract and mix until smooth.
For a stronger coffee flavor, use the full 2 tablespoons of espresso powder.