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I have never tried this substitution before but I don't see it being an issue. It will just be a bit more tart and runny than it would with sour cream.
Absolutely. I don't even think it will necessarily be "more tart and runny" depending on what kind of yogurt you use, and given the wide variation of sour cream flavor and texture.
I would drain it overnight in the fridge in a sieve lined with cheesecloth or a coffee filter first or it might be too liquidy.
If your yogurt is low fat, I wouldn't use it--I think it would be too unsubstantial and lacking in mouth feel for a frosting. Greek yogurt might work--it is thicker and has a high fat content. At any rate, draining the yogurt over night is a very good idea.
Thanks for all of your thoughts on this! Decided to go out and get a tub of sour cream in the end as I only had 0% yogurt in the fridge, which is pretty runny, sort of like heavy cream. But if I had greek yogurt I would definitely subtitute it next time.