Cake:

2/3 cup butter, softened

1 1/3 cups granulated sugar

1 1/2 teaspoons vanilla extract

2 eggs

2 cups sifted cake flour

1 1/2 teaspoons baking soda

1/4 teaspoon salt

2/3 cup milk

Pecans:

3 tablespoons butter, melted

1 1/2 cups chopped pecans

Frosting:

8 ounces cream cheese, softened

1/4 cup butter, softened

5 cups sifted powdered sugar

1 teaspoon vanilla

1. Grease and flour two 9-inch cake pans and set aside. Preheat oven to 350 degrees.

2. To prepare the pecans: Combine the melted butter and pecans. Spread in a baking pan and bake about 10 to 15 minutes, until golden and fragrant. Transfer to a plate and cool.

3. To prepare the cake: Cream together the butter and granulated sugar, beating until light and fluffy. Add vanilla. Add eggs, one at a time, beating well.

4. Sift together the cake flour, soda and salt. Add to creamed mixture, alternating with the milk, beating well after each addition. Scrape down the sides of the bowl during mixing. Fold 1 cup of the pecans into the batter. Transfer to the prepared pans. Bake on the center oven rack about 25 minutes, or until the cakes test done in the center. Cool in the pans 5 minutes before unmolding onto cooling racks. Let cool completely.

5. To Prepare the frosting: Beat together the cream cheese, butter and powdered sugar until blended. Add vanilla and beat until smooth. Stir in remaining 1/2 cup pecans.

6. Place one of the cake layers on a serving plate. Frost the top and place second layer on top. Frost top and sides of cake. Refrigerate, loosely covered, until ready to serve.