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Heat the oven to 350º F (175°C). Lightly grease two 9-inch round cake pans and line the base of each pan with parchment paper.
Combine together flour, baking powder, baking soda, salt, cinnamon, ginger and nutmeg in a bowl until well combined.
In a separate bowl whisk the oil, pineapple (or apple sauce), sugars and vanilla. Beat in eggs one at a time until well combined. Stir the dry ingredients into the wet mixture until the batter is smooth, while scraping the batter from the sides of the bowl. Fold in grated carrots, 3/4 cup of nuts and sultanas.
Divide the batter between the prepared cake pans. Bake for 40-45 minutes, or when a toothpick inserted into the centre of each cake comes out clean.
Let cool in pans for 30 minutes. Transfer to cooling racks peeling the paper off the base of each cake as you go. Allow to cool completely before frosting.
In large bowl, beat together softened cream cheese and butter, scraping down sides of bowl when needed, for 2-3 minutes until smooth and creamy. (Use a hand mixer.)
Stir in vanilla and powdered sugar, adding more sugar if needed until frosting is thick and spreadable.
Frost cooled cake and top with remaining crushed nuts for decoration (optional).