In a mixing bowl, add butter, brown sugar, and white sugar.
Cream together until the mixture is crumbly, then add the milk and vanilla essence. Continue creaming until well combined—but don't overbeat, as the butter might curdle.
Sift in all-purpose flour, cinnamon powder, and baking powder.
Add the grated carrots and chopped walnuts and gently mix.
Pour the batter into a greased 7x3-inch round pan. Sprinkle a little milk on top to keep the crust soft.
Bake in a preheated oven at 350°F for 30 to 35 minutes or until a toothpick inserted in the center comes out clean. (I also tested my newer oven at 325°F for 35 minutes, which worked beautifully!) Baking at 350°F gives a slightly crisp crust on top. Cool the cake on a wire rack for 10 to 15 minutes, then gently loosen the edges with a knife and flip it out of the pan. Let it cool for another 15 minutes before slicing, or cool it for 1–2 hours if you plan to decorate. I wrapped mine after an hour and refrigerated it overnight for the best results.
For the frosting, combine cream cheese, powdered sugar, and butter. Mix until all the ingredients are well-combined and lump-free using an electric hand mix. Next add the grated carrot and ginger and mix. Decorate the cake as you like. Here is how I decorated the cake (I am not a pro; I am still learning how to decorate a cake). I added ¾ of the frosting to the cake and spread it evenly(ok, not-so-evenly) using an angled cake spatula. Then, I put the remaining ¼ of the frosting into my piping bag with a star tip and piped a few stars on the top and sides. Finally, sprinkle some confetti on top.
Notes
Feel free to use any milk of your choice.
You can substitute butter with vegetable shortening or oil, but I recommend butter for carrot cake—it adds amazing flavor.
There is no need for special ingredients—I just pulsed regular sugar in a blender for a finer texture and used it in the frosting, too.
Use full-fat cream cheese and about 1 cup of powdered sugar for a rich, smooth frosting.
Frosting is optional—this cake tastes amazingly warm on its own or served with a scoop of vanilla ice cream!