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

Cream together cheese, sugar, and egg. Set aside.

CAKE:

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

Combine all dry ingredients. Combine oil and eggs and add to dry mix, stirring just until moist. Fold in carrots and nuts.

Reserve 2 cups of batter.

Grease and flour a bundt pan. Pour most of batter into pan. Spoon cream cheese filling over batter. Carefully spoon reserved 2 cups of batter over top of the cream cheese filling, 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 and cool thoroughly. Sprinkle with powdered sugar.