Gather the ingredients. You will need butter, cinnamon, vanilla extract, and powdered sugar.

Soften the butter. A good way to soften butter is to allow it to set out at room temperature for about an hour.

Add all of the ingredients to a bowl and mix thoroughly.

I started with half a stick of butter, mixed that well and then added the remaining butter.

Add the cinnamon butter to a sealable container for storage. If you plan to use the butter right away, add it to a serving bowl.