Softened butter is butter that has been brought to room temperature, making it easy to blend into other ingredients. When butter is softened, it should be soft enough to squish between your thumb and forefinger or leave an indentation when pressed with the back of a spoon, yet it should not lose its shape. Softened butter is important in baking because it can hold air during the creaming process, which expands when baked and produces a fluffy texture in baked goods.
There are several ways to soften butter quickly, including cutting it into small cubes, grating it, pounding and flattening it, or microwaving it. However, microwaving butter is not recommended as it can heat the butter unevenly and over-soften or even melt it in places. It is best to plan ahead and set the butter out on the counter for about 1-2 hours to soften it naturally.