Set out cream cheese and unsalted butter to allow to come to room temperature.
Sift the powdered sugar.
Place cream cheese and butter into the bowl of a stand mixer fitted with the paddle attachment and beat on medium until fully combined and smooth – for about a minute.
Reduce to low speed and very slowly add the sifted powdered sugar and beat for another 3 minutes until fully incorporated and smooth.
Scrape down the sides of the bowl and make sure to incorporate the ingredients from the bottom of the bowl.
At low speed, add the pumpkin and mix for one minute until smooth. If icing seems too loose, add more powdered sugar ¼ C at a time until desired consistency.
Place in the refrigerator for 10 minutes and then use immediately.