Preheat the oven to 350 degrees Fahrenheit (175 degrees Celsius). Lightly grease and line two 8-inch round cake pans with parchment paper, or a 9x13-inch pan if making a sheet cake.
In a large mixing bowl, whisk together the flour, sugar, baking powder, baking soda, cinnamon, nutmeg, and salt.
Add the grated carrots, applesauce, oil, plant-based milk, and vanilla extract. Stir gently until just combined (do not overmix).
Fold in nuts and raisins if using.
Pour the batter evenly into the prepared pans.
Bake for 40–45 minutes, or until a toothpick inserted in the center comes out clean.
Let the cake cool in the pan for 10 minutes, then transfer to a wire rack to cool completely before frosting.
To make the frosting, beat together the vegan cream cheese and vegan butter until smooth. Gradually add powdered sugar and vanilla, beating until light and fluffy.
Frost the completely cooled cake. Decorate with extra walnuts or shredded carrot if desired.
Slice and serve.
Notes
Avoid using too much flour: Avoid scooping the cup into the flour bag. Instead, fluff it up with a fork, spoon it into the cup, then level with a knife. DON’T pack it down.
Use fine/medium carrot shreds: Pieces that are too large/thick are more likely to stay firm and won’t release as much moisture. Finely grated carrot practically melts into the batter for a moist, tender crumb.
Don’t over-mix the batter: For a soft, fluffy cake, instead of tough/dense.