In a stand mixer, cream together cream cheese and butter. Add the vanilla extract and mix. At med-low speed, mix in the powdered sugar. Bump the speed up to medium or medium-high and whip until a firm consistency, about 2-5 minutes. It will thicken as you whip. If the frosting is too thick, add milk one tsp at a time until you reach the consistency you want. In a food processor or manually, finely crush the oreos into crumbs (use the whole oreo and cream center). With a rubber spatula or spoon, mix the oreos into the frosting. Chill in refrigerator before piping if creating high topped cupcakes.