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To the top bowl of a double boiler or a heat-safe mixing bowl, add all ingredients except the vanilla extract. Place over simmering water—make sure the bottom of the bowl does not touch the water.
Whisk until mixture increases in volume and lightens in color, about 4 minutes. It is ready when an instant-read thermometer reads 160°F. If you don't have a thermometer, you can (carefully) dip you finger in and rub the mixture between your fingers. You shouldn't feel any sugar granules.
Immediately move the mixture to your stand mixer fitted with a whisk attachment (or use your hand-mixer). You need to whip the mixture while it is still warm.
Begin mixing on medium speed. Add in the vanilla extract. Increase speed to medium-high, and beat until it reaches stiff peaks and the mixture has cooled. This can take as long as 15 minutes depending on temperature and humidity.
The frosting should be glossy, smooth, and stand up on it's own. It needs to stay cool (not necessarily cold). If left in the heat, the frosting will weep and liquify. This is great for the outside of a cake, cupcakes, cupcake filling, whoopie pie filling.