1: Preheat the oven as per your cake pan's requirement.
2: In a bowl, mix the milk, light brown sugar, granulated sugar, oil, and vanilla extract.
3: In another bowl, combine all-purpose flour, baking powder, baking soda, cinnamon powder, and salt.
4: Gradually add the dry ingredients to the wet mixture and mix well.
5: Fold in the grated carrots and chopped walnuts if using.
6: Pour the batter into a greased cake pan and bake for approximately 45 minutes.
7: In the meantime, prepare the cream cheese frosting by mixing cream cheese, butter, powdered sugar, and vanilla extract until smooth.
8: Once cooled, frost the carrot cake with the cream cheese frosting and sprinkle toasted walnuts on top.