Step 1: Heat oven to 350F. Coat 2 (9-inch) round cake pans with cooking spray, tap to remove air bubbles.
Step 2: In a large mixing bowl (KitchenAid mixer), beat sugar and butter on medium speed until fluffy. Add pumpkin, beating well. Next, add egg substitute and vanilla, again, beating well.
Step 3: Sift cake flour, then spoon into measuring cups. Place flour in a medium mixing bowl. Whisk in dry ingredients (baking soda through nutmeg).
Step 4: Alternately add flour mixture and milk to butter mixture (beginning and ending with flour).
Step 5: Pour batter evenly into cake pans. Bake 30 minutes or until toothpick comes out clean.
Step 6: Cool 10 minutes on wire rack, remove from pans and cool completely on wire rack.
Step 7: Prepare frosting: In a large mixing bowl, beat together 1 CUP powdered sugar and cream cheese on medium speed. Add remaining powdered sugar and orange zest. Beat until fluffy.
Step 8: Put a cake layer on a serving plate. Spread 2/3 cup frosting over first layer. Top with second layer. Spread remaining frosting on top only (not sides).
Step 9: Arrange orange slices in a ring around the outer edge of the top layer. Sprinkle pomegranate seeds in a circle in the middle.
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