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Combine oil and sugar; mix well. Sift dry ingredients; mix alternately with eggs (1 at a time) to the oil/sugar mixture. Add carrots, pineapple, and vanilla; mix well. Add nuts.
Bake at 350 degrees for 45-50 minutes in 3 (9-inch) round pans. Remove from oven when toothpick is inserted and removed and is clean. Allow to cool.
Frosting: 1 (8-oz) cream cheese; 3 1/2 C. powdered sugar; 1/2 C. butter; 2 tsp. vanilla. Beat till creamy. Spread on Cooled cake. Garnish with nuts if desired.