Step 1

Preheat the oven to 350°F. Grease 3 (8-inch) round cake pans.

Step 2

In a large bowl, whisk together flour, baking powder, salt, and baking soda.

Step 3

In a medium mixing bowl or the bowl of a stand mixer fitted with the whisk attachment, beat the sugar, sour cream, and oil until combined, 1 to 2 minutes. Stopping to scrape down the sides of the bowl as needed. Add the eggs, one at a time, scraping down the bowl between additions, beat until well combined. Add the lime juice, zest, and vanilla and beat until combined.

Step 4

Add the oil mixture to the flour mixture and beat until just combined. Divide the batter among the prepared cake pans. (if using a stand mixer, you can add the flour mixture into the oil mixture already in the bowl.)

Step 5

Bake for 15 to 20 minutes or until the center of cakes are springy to the touch the sides are just starting to pull away from the pan. Let the cakes cool in the pan for 10 minutes then invert and cool completely on a wire rack.

Step 6

In a large mixing bowl or the bowl of a stand mixer fitted with the paddle attachment, beat the butter and cream cheese together on medium speed until creamy and well combined, about 1 minute.

Step 7

With the mixer on low speed, gradually add the confectioners’ sugar alternating with a little bit of the lime juice. Stop occasionally and scrape down the bowl. Beat in the vanilla. Once combined, increase the speed to medium-low and beat until smooth and fluffy, about 1 minute.

Step 8

Place 1 cup of frosting in a piping bag fitted with a star tip.

Step 9

Place one cooled cake layer on a cake stand or serving plate. Top with 1 cup of frosting, spreading smoothly out to the edges. Place another cake layer on top and repeat with 1 cup of frosting. Top with final cake layer, and spread the remaining frosting all over the top and sides of the cake.

Step 10

Pipe decorations on the top edge of cake with the reserved frosting. Garnish with thin lime slices, if desired. Chill for 30 minutes to set the frosting before serving. Cake can be covered at stored at room temperature for up to 5 days.