Heat oven to 350° F.
In large bowl, sift flour, baking soda, salt, cinnamon and baking powder.
In mixing bowl, cream together oil and sugar. Add eggs one at a time. Gradually add in carrots and crushed pineapple.
Add dry mixture to wet ingredients and beat until smooth. Fold in walnuts.
Pour batter into two lightly greased 8-inch round cake pans and bake 25-30 minutes, or until knife inserted in center comes out clean. Allow cakes to cool completely. Remove cakes from pans and slice off tops to level cakes.
To make frosting: In mixing bowl, cream together cream cheese, butter and vanilla. Gradually add in powdered sugar and mix until smooth.
Spread two large spoonfuls frosting over top of one cake and stack second cake on top. Frost entire cake with remaining frosting.
