Preheat your oven to 350°F (177°C). Grease three 8-inch cake pans, line them with parchment paper, and then grease the parchment paper as well. This helps prevent the cakes from sticking.
In a bowl, whisk together the flour, baking powder, baking soda, and salt. Set this mixture aside as you prepare the wet ingredients.
In a large mixing bowl, use a mixer to beat the softened butter and granulated sugar until creamy and light in color. This process should take about 2-3 minutes, creating a nice fluffy texture.
Add the eggs, one at a time, mixing well after each addition. Then, stir in the vanilla extract until fully combined. This adds a lovely depth of flavor to your cake.
Gradually mix in the dry ingredients until just combined. Be careful not to overmix, as this can lead to a denser cake.
Now, add the milk, lemon zest, and lemon juice to the batter. Mix until just combined; the batter should be smooth and slightly thick.
Divide the batter evenly among the three prepared cake pans. Bake in the preheated oven for about 21-26 minutes, or until a toothpick inserted into the center comes out clean.
Once baked, let the cakes cool in the pans for about 10 minutes, then transfer them to a wire rack to cool completely. This is crucial as frosting a warm cake can cause the frosting to melt.
For the frosting, beat the softened butter in a large bowl until creamy. Then, add the softened cream cheese and continue mixing until smooth.
Add the confectioners’ sugar, fresh lemon juice, vanilla extract, and a pinch of salt to the mixture. Beat until the frosting is fluffy and well combined.
To assemble your cake, place one layer on a serving plate and generously spread frosting on top. Repeat with the second layer, adding more frosting, and finally place the third layer on top.
Frost the top and sides of the cake with the remaining cream cheese frosting. For a professional touch, use a spatula to create smooth edges.
Refrigerate the assembled cake for 30-45 minutes before slicing. This helps the frosting set and makes for cleaner slices. Store any leftovers in the refrigerator for up to 5 days.