Prepare the Pistachios and Pans:

1. Preheat oven: Preheat your oven to 350°F (175°C). Grease two 8-inch or 9-inch round cake pans, line the bottoms with parchment paper circles, grease the parchment, and lightly flour the pans. Tap out excess flour.

2. Grind pistachios: In a food processor, pulse the pistachios until they’re finely ground into a meal-like consistency, similar to almond flour. Be careful not to over-process or they’ll turn into pistachio butter. You should have about 1½ cups of pistachio meal. Set aside.

3. Mix dry ingredients: In a medium bowl, whisk together the flour, baking powder, baking soda, and salt. Add the ground pistachios and whisk to combine evenly. Set aside.

Make the Cake Batter:

4. Cream butter and sugar: In a large bowl using an electric mixer, beat the room temperature butter and sugar together on medium-high speed for 3-4 minutes until light, fluffy, and pale in color. Scrape down the sides of the bowl as needed.

5. Add eggs: Add the eggs one at a time, beating well after each addition and scraping down the bowl between additions. The mixture should look smooth and creamy.

6. Add extracts: Mix in the vanilla and almond extracts until combined.

7. Combine wet ingredients: In a small bowl or measuring cup, whisk together the sour cream and milk until smooth.

8. Alternate additions: With the mixer on low speed, add the dry pistachio-flour mixture in three additions, alternating with the sour cream mixture in two additions. Begin and end with the dry ingredients. Mix each addition just until combined—don’t overmix. The batter should be thick but pourable, with a beautiful pale green color.

9. Divide batter: Divide the batter evenly between the two prepared pans (use a kitchen scale for accuracy if you have one, or eyeball approximately 2½ cups per pan). Smooth the tops with a spatula and gently tap the pans on the counter to release air bubbles.

Bake the Cakes:

10. Bake: Bake for 28-32 minutes (8-inch pans) or 25-28 minutes (9-inch pans), until a toothpick inserted in the center comes out clean or with a few moist crumbs, and the tops spring back when lightly pressed.

11. Cool: Let the cakes cool in the pans on wire racks for 10-15 minutes. Then run a knife around the edges, carefully invert onto the racks, remove the parchment paper, and let cool completely before frosting (at least 1 hour).

Make the Cream Cheese Frosting:

12. Beat cream cheese and butter: In a large bowl with an electric mixer, beat the softened cream cheese and butter together on medium speed for 2-3 minutes until smooth, creamy, and well combined.

13. Add sugar gradually: With the mixer on low, gradually add the sifted powdered sugar, 1 cup at a time, beating well after each addition. Scrape down the bowl as needed.

14. Add flavorings: Mix in the vanilla extract and a pinch of salt.

15. Adjust consistency: Add heavy cream 1 tablespoon at a time until the frosting reaches your desired consistency—spreadable but not too soft. Beat on medium-high for 1-2 minutes until light and fluffy.

Assemble the Cake:

16. Level layers (optional): If your cake layers have domed tops, use a serrated knife to level them for easier, more stable stacking.

17. First layer: Place one cake layer on a cake board or serving plate (flat side up if you leveled it). Spread about 1 cup of frosting evenly over the top using an offset spatula.

18. Second layer: Place the second cake layer on top, flat side up for a smooth surface.

19. Frost the cake: Apply a thin crumb coat of frosting all over the cake (top and sides) to seal in crumbs. Refrigerate for 15-20 minutes until firm. Then apply the remaining frosting in a thicker, final layer, smoothing with an offset spatula.

20. Decorate: Garnish the top with chopped pistachios, pressing some gently into the sides if desired. Add whole pistachios for extra decoration if you like.

21. Chill and serve: Refrigerate the cake for at least 30 minutes to set the frosting. Remove from the refrigerator 20-30 minutes before serving for the best texture and flavor. Slice with a sharp knife, wiping it clean between cuts.