Peel and dice potatoes into 1 1/2 inch pieces.

Cook in a pot of salted water until fork tender.

Drain, then place back into the pot over medium heat. Using a wooden spoon or potato masher, break up pieces and cook off the excess water.

Add butter and cream cheese to the pot. Using an electric hand mixture, beat the butter and cream cheese into the potatoes; then slowly add the milk. Season with salt and pepper to taste. Increase the speed of the hand mixer to high, then whip potatoes until fluffy and no lumps remain.