Preheat oven to 350°F. Grease 3 8-inch round pans and line with parchment paper.
If using whole freeze-dried strawberries, process them in a food processor or spice grinder until powdered.
In the bowl of a stand mixer fitted with a paddle attachment, add 1.2 oz freeze-dried strawberry powder, flour, sugar, baking powder and salt. Mix on medium speed for a minute to combine evenly.
In a separate bowl, whisk together the wet ingredients: milk, egg whites, oil, vanilla extract and vinegar.
Turn the mixer on low and gradually add the softened butter to the dry ingredients, a tablespoon or so at a time. Continue to beat on low until there are no big chunks of butter remaining and mixture is crumbly.
On low speed, slowly stream in ⅓ of the milk mixture and mix until a paste forms. Scrape down the bowl.
On low speed, gradually add ½ of the remaining milk mixture and beat on medium-low speed for 3 minutes.
Add the remaining milk mixture on low along with 3-5 drops of food coloring (if using), then beat on medium-low speed for 4 minutes.
Divide cake batter equally between your prepared pans. Bake for 40-45 minutes or until the top springs back lightly under your finger.
In the bowl of a stand mixer, beat the softened butter until smooth. Add the cold cream cheese and beat together until smooth.
Add the reserved 1.2oz freeze-dried strawberry powder and salt and beat until smooth. Add the powdered sugar, a cup at a time, and beat on low until combined.
Increase speed to medium and beat for a full minute, or until billowy and fluffy. Add cream or milk, a tablespoon at a time, until desired consistency is reached.
Bring the water and sugar to a boil and let cook until sugar is dissolved. Let cool for 5-10 minutes before mixing with the strawberry puree.
If you have time to chill the cake layers before assembling, that's always helpful to frost the cake cleanly. Level the layers as needed, brush with simple syrup (if using) frost and garnish with slices of fresh strawberry.
