Preheat your oven to 350°F (175°C). Grease three round cake pans and line with parchment paper.

In a mixing bowl, whisk together the all-purpose flour, baking powder, and salt.

In a separate bowl, cream the softened butter and granulated sugar together until fluffy. Add the eggs one at a time, mix well, then stir in the milk until smooth.

Gradually fold the dry mixture into the wet ingredients. Add the crushed pistachios, being careful not to overmix.

Divide the batter among the prepared pans. Bake for 25-30 minutes or until a toothpick inserted comes out clean. Let cool on wire racks.

While the cakes cool, whip together the cream cheese and softened butter until creamy. Gradually add powdered sugar and vanilla extract until smooth.

Once cooled, stack the cakes with frosting between layers and on top. Decorate with extra crushed pistachios if desired.