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Preheat the oven to 350°F (180°C). Grease and flour two 9-inch round cake pans.
In a bowl, combine the flour, ground pistachios, baking powder, and salt. Set aside.
In a separate bowl, cream the softened butter and granulated sugar until light and fluffy.
Add the eggs one at a time, beating well after each addition. Mix in the vanilla extract.
Gradually add the dry ingredients to the wet ingredients, alternating with the milk, and mix until just combined.
Divide the batter evenly between the prepared cake pans and smooth the tops. Bake for 25-30 minutes or until a toothpick inserted into the center comes out clean.
Allow the cakes to cool in the pans for 10 minutes, then transfer to a wire rack to cool completely.
To make the rosewater buttercream, cream the softened butter until smooth. Gradually add the powdered sugar, beating until creamy. Mix in the rosewater and green food coloring, if using.
Once the cakes have cooled, spread a layer of buttercream on top of one cake layer. Place the second layer on top and frost the top and sides of the cake with the remaining buttercream.
Garnish the cake with crushed pistachios before serving.
Slice and enjoy!