Preheat your oven to 350°F (175°C). Grease two round cake pans and line the bottoms with parchment paper.

Grate 2 to 3 medium-sized carrots finely to achieve around 1.5 cups. Squeeze out excess moisture if necessary.

In a large mixing bowl, combine 1 cup of milk, ½ cup vegetable oil, 2 teaspoons of vanilla extract, 1 cup light brown sugar, and ½ cup cane sugar. Whisk until smooth.

In another bowl, whisk together 2 cups all-purpose flour, 1 teaspoon baking powder, 1 teaspoon baking soda, ½ teaspoon salt, and 1 teaspoon cinnamon powder. Gradually add these to the wet mixture, stirring gently.

Fold in your grated carrots and optional chopped walnuts into the batter.

Divide the batter between the prepared cake pans and smooth the tops. Bake for about 40 to 45 minutes.

Allow to cool on a wire rack for about 10 minutes before inverting them and peeling off parchment.

For frosting, beat ½ cup softened butter until fluffy, then gradually add 1 to 2 cups of sifted powdered sugar. Add 8 oz. cream cheese and 1 teaspoon vanilla extract; whip until smooth.

Level the tops of the cakes, frost one layer generously, place the second layer on top, and apply a crumb coat before chilling for 20 minutes.

After chilling, apply a thick layer of frosting and decorate with additional walnuts or grated carrots.