Beat the cream cheese, butter and vanilla until smooth
add the powdered sugar and mix, scraping the sides, until smooth and just the right thickness (more of less powdered sugar to get the right texture)
level the cakes if you need to, place on a small plate and frost evenly.
Decorating
roll out white fondant about 1/8 of an inch thick
cut 6-7 inch circles - I used a plate as an easy round guide
center the circles over each cake and drape the fondant on top - usually you want to smooth fondant out but this time you want it to create ripples to look more ghost like.
add a drop or two of the gel to a small bowl and add just enough clear vanilla to make it just liquidy enough to paint with
using a small brush paint ghost faces onto each of the cakes.