Place the softened butter into a medium mixing bowl or the bowl of a stand mixer fitted with the whisk attachment.
Whip the butter on medium-high speed for 2-3 minutes until it becomes pale, light, and fluffy. Scrape down the sides of the bowl as needed.
Add the powdered sugar, honey, and vanilla extract to the bowl.
Mix on low speed initially to incorporate the sugar without making a mess, then increase speed to medium-high.
Whip for another 2-3 minutes until the mixture is smooth, creamy, and voluminous.
Serve immediately over warm bread, or store in an airtight container in the refrigerator.