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

Combine until well blended. Set aside.

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. nuts, chopped

Combine flour, sugar, baking soda, cinnamon and salt in mixing bowl. Combine oil and eggs. Add to dry ingredients, mixing just until moistened. Fold in carrots and nuts. Reserve 2 cups butter; 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 55 minutes. Cool 10 minutes. Remove from pan. Cool thoroughly. Sprinkle with powdered sugar.