1-1/4 c. vegetable oil
2 c. sugar
4 eggs, beaten
2 c. flour
1 tsp. baking soda
1 tsp. baking powder
2 tsp. cinnamon
1/4 tsp. salt
1/4 tsp. ground nutmeg
3 c. grated carrots

Combine eggs, sugar and oil. Mix well. Combine dry ingredients. Mix well. Beat dry ingredients into egg mixture. Stir in carrots. Pour into two 9-inch round baking pans.

Bake in 350°F oven for 35 to 40 minutes (or until toothpick inserted in center comes out clean). Cool for 10 minutes and remove to wire rack.

Frosting:

1 lb. powdered sugar
8 oz. cream cheese, softened
1 stick butter
2 tsp. vanilla
1/4 c. evaporated milk

Cream butter and cream cheese. Add milk and vanilla. Gradually add sugar. Frost only after cake is completely cooled.