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Gather the ingredients. Preheat the oven to 350 degrees F (175 degrees C). Grease and flour three 9-inch layer pans.
Melt ¼ cup butter in a heavy skillet over medium heat. Add pecans; cook and stir until browned, 10 to 15 minutes. Set aside.
Sift flour, baking powder, and ½ teaspoon salt; set aside.
Cream 1 cup butter and 2 cups white sugar in a large mixing bowl until light and fluffy. Blend in eggs, one at a time, beating well after each addition.
Add flour mixture alternately with milk and vanilla extract, beginning and ending with dry ingredients. Blend well after each addition. Fold in 1 ⅓ cups of the pecans.
Pour batter into the prepared pans. Bake in the preheated oven until cake is golden brown and springs back when lightly touched in center, 25 to 30 minutes. Allow cakes to cool.
To make the pecan frosting: Beat ¼ cup butter in a mixing bowl until light and fluffy. Add 1 teaspoon vanilla extract, ¼ teaspoon salt, 4 cups confectioners' sugar, and ⅓ cream; beat until smooth and spreadable, adding more cream if needed. Fold in remaining ⅔ cup pecans.
Spread frosting between layers of cooled cake and on top.