Begin by gathering all your ingredients: softened cream cheese, natural peanut butter, butter, powdered sweetener, and vanilla extract. Ensure the cream cheese and butter are at room temperature for easier mixing.

In a large mixing bowl, beat together the softened cream cheese, natural peanut butter, butter, and powdered sweetener using an electric mixer for about 2-3 minutes until the mixture is velvety smooth and fully combined.

Stir in the vanilla extract to enhance the flavor of your fudge. Mix until everything is thoroughly combined, about 1 minute.

Prepare an 8×8-inch dish by lining it with parchment paper. Pour the fudgy mixture into the prepared dish, spreading it evenly into the corners, and smooth the top.

Place the dish in the refrigerator and let the fudge chill for at least 2 hours, or until it is firm to the touch.

Carefully lift the fudge out of the dish using the parchment paper overhang. Cut it into small squares with a sharp knife.