Prep the strawberries: Hull and slice 1 pound of strawberries. Blend into a smooth puree. Pour into a small saucepan with 1–2 tablespoons sugar and a squeeze of lemon.
Simmer over medium heat, stirring often, until reduced to about 2/3 cup and thickened like a thin jam, 12–15 minutes. Cool completely.
Get your pans ready: Heat oven to 350°F (175°C). Grease and line two 8-inch round cake pans with parchment.
Lightly flour the sides. This helps the cakes release cleanly and rise evenly.
Mix the dry ingredients: In a medium bowl, whisk 2 1/2 cups cake flour, 2 teaspoons baking powder, 1/2 teaspoon baking soda, and 1/2 teaspoon salt. Set aside.
Cream butter and sugar: In a large bowl, beat 1/2 cup softened unsalted butter with 1 1/4 cups granulated sugar until light and fluffy, 2–3 minutes.
Add 1/3 cup neutral oil and beat to combine. This blend gives you flavor and moisture.
Add eggs and flavor: Beat in 3 large eggs, one at a time, scraping the bowl. Mix in 1 1/2 teaspoons vanilla and, if using, 1/2 teaspoon strawberry extract.
The batter should look glossy and smooth.
Stir in sour cream and strawberry reduction: Mix in 1/2 cup sour cream and the cooled strawberry reduction until fully combined. The batter will turn a soft pink.
Combine wet and dry: Add the dry ingredients in two additions, mixing on low just until no dry streaks remain. Do not overmix.
Overmixing leads to a dense cake.
Divide and bake: Split the batter evenly between prepared pans. Smooth the tops. Bake 22–27 minutes, until the centers spring back and a toothpick comes out with a few moist crumbs.
Cool the layers: Let cakes cool in pans for 10 minutes.
Run a knife around edges, then turn onto a rack. Peel off parchment and cool completely before frosting.
Make the frosting: Beat 8 ounces softened cream cheese with 1/2 cup powdered sugar and 1 teaspoon vanilla until smooth. Add a pinch of salt and 1 teaspoon lemon juice.
In a separate bowl, whip 1 cup cold heavy cream to medium peaks. Fold the whipped cream into the cream cheese mixture in two additions until fluffy. For a pink tint and flavor, fold in 2–3 tablespoons strawberry reduction or 1–2 tablespoons strawberry puree.
Assemble: Place the first cake layer on a stand.
Spread a generous layer of frosting. Add a thin layer of sliced fresh strawberries if you like (pat them dry first). Top with the second layer.
Frost the top and sides. Chill 20–30 minutes to set.
Garnish and serve: Decorate with halved strawberries on top. Slice with a sharp knife, wiping between cuts for clean slices.