Preheat the oven to 350°F. Grease two 9-inch round cake pans and sprinkle flour into each to prevent sticking.
In a large mixing bowl, whisk together the grated carrots, eggs, sugars, and oil until well combined and smooth.
Add the flour, baking powder, baking soda, and cinnamon to the wet mixture. Whisk until you have a smooth batter. Fold in chopped nuts if desired.
Evenly split the batter between the prepared cake pans. Bake for about 30 minutes, checking with a toothpick—it should come out clean when the cake is ready.
Let the cakes cool in their pans for around 15 minutes before transferring them to a wire rack to cool completely.
Beat the softened butter and cream cheese together until light and fluffy. Gradually add powdered sugar and vanilla, mixing until the frosting is smooth and creamy.
Once the cakes are completely cooled, frost the top of one layer. Stack the second layer on top and frost the top and sides of the cake.
Finish by decorating with cake crumbs and additional nuts if you like for taste and texture.