Start with room-temperature butter. It should be soft but not melted (see note 2).
Combine butter and peanut butter in a stand mixer with the paddle attachment (or in a large bowl if using a hand mixer.) Mix at low speed until creamy and thoroughly combined. Avoid whipping.
Gradually add powdered sugar, about 1/2 cup at a time, pausing the mixer each time to prevent a cloud of sugar. Keep the mixer at low speed until the sugar is fully combined with the butter and peanut butter. Scrape the sides and bottom to ensure all ingredients are incorporated.
Add vanilla extract and salt. Keep the mixer on low speed and gradually add the milk. Mix until milk is combined with the other ingredients. Increase speed to medium-high and beat frosting for another 30 seconds. Taste and add more salt if desired to intensify flavors or further balance the sweetness.
Once ready, spread or pipe the frosting onto completely cooled cupcakes or cake.
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Notes
Note 1: This recipe makes enough to frost a 9x13-inch cake, a 2-layer cake (8 or 9-inch rounds), 24 cupcakes, or generously frost 12 cupcakes as shown in the post photos.Note 2: Butter should be soft but not melted. If it’s too soft or melted, the frosting could turn out too loose. If the butter is too cold or hard, it will be difficult to properly mix with the other ingredients and could create lumps. Room-temperature butter should still feel cool to the touch, hold its shape, but yield to slight pressure. (See post for how to soften butter quickly if needed.)Note 3: For an ultra-smooth frosting, sift the powdered sugar before adding it in. (I usually don’t bother!) To avoid adding too much sugar, spoon powdered sugar into the measuring cup and use the back of a table knife to level off the top.Nutrition Note: Nutrition information is based on 12 servings—a dozen cupcakes or a large cake.Storage: Store leftover frosting in an airtight container in the fridge for up to a week. Let it sit at room temp and stir before using.