1 (8 oz.) pkg. cream cheese
1/4 c. sugar
1 egg, beaten

Combine softened cream cheese, 1/4 cup sugar and beaten egg, mixing until well blended. Set aside.

CAKE BATTER:

2 c. flour
1 3/4 c. sugar
2 tsp. baking soda
2 tsp. cinnamon
1 tsp. salt
1 c. oil
3 eggs, beaten
3 c. carrots, shredded
1/2 c. chopped nuts

Combine dry ingredients. Add combined oil and 3 beaten eggs, mixing just until moistened. Fold in carrots and nuts. Reserve 2 cups batter. Pour remaining batter into greased and floured 9-inch bundt pan. Pour cream cheese mixture over batter. Carefully spoon reserved batter over cream cheese mixture, spreading to cover.

Bake at 350 degrees for 55 minutes or until wooden pick inserted in center comes out clean. Cool 10 minutes; remove from pan. Cool thoroughly. Sprinkle with powdered sugar, if desired.