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Preheat oven to 350°F.
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In a large bowl, mix sugar, oil, eggs and vanilla. Sift dry ingredients together, and gradually add to wet mixture. Stir in grated carrots and nuts. Pour into a greased and lightly floured 9 X 13-inch pan or 3 9-inch round layer cake pans.
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Bake for 40 - 45 minutes until toothpick comes out clean. Remove from oven and cool on a wire rack. Frost with Cream Cheese Frosting.
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CREAM CHEESE FROSTING.
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1 8-oz. package cream cheese, softened.
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3/4 cup butter, softened.
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1 pound confectioners' sugar.
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1/2 cup chopped nuts (optional).
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2 teaspoons vanilla extract.
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Cream butter and cream cheese. Add sugar and mix well. Add nuts and vanilla. Spread on cooled cake.