1. In a separate bowl, beat the softened cream cheese and butter (or margarine) with an electric mixer on medium speed until the mixture is smooth.
2. Gradually add the powdered sugar, beating until the frosting is light and fluffy.
3. Stir in the vanilla extract and the 1 cup of chopped, toasted pecans.

Assemble the Cake

1. Spread the cream cheese frosting between the cooled cake layers, then cover the top and sides of the cake with the remaining frosting.
2. Chill the finished cake for 2 hours before slicing and serving.