Preheat your oven to 350°F (175°C) and prepare two 8-inch round cake pans by greasing them with vegetable oil and lining with parchment paper.

Finely grate the fresh carrots, squeezing out excess moisture if necessary.

In a large mixing bowl, combine milk, light brown sugar, cane sugar, vegetable oil, and vanilla extract. Whisk until smooth.

In another bowl, sift together all-purpose flour, baking powder, baking soda, salt, and cinnamon powder. Gradually add to the wet mixture, stirring gently.

Fold in the grated carrots and walnuts into the batter carefully.

Divide the batter between the prepared pans and bake for 40-45 minutes or until a toothpick comes out clean.

Let the cakes cool in the pans for about 10 minutes, then turn out onto a wire rack.

Prepare the frosting by beating cream cheese and butter until fluffy, then add powdered sugar and vanilla extract.

Once the cakes are cool, level the tops, frost the first layer, stack the second layer, and frost the top and sides.

Refrigerate for 30 minutes before serving to set the frosting.