Okay, I think I might have finally conquered this recipe, albeit it's my fourth attempt. Two things I did differently from the last recipe: I cut the flour by 1/4 cup and shaved 3 minutes off the baking time. My modified recipe is below. It's still not as fluffy as a "real" cake but it was definitely more moist - yay. But I think I'm done with this cake for awhile :).
Vanilla Sugar Cookie Cake
1 cup butter, softened
1 8 oz. block cream cheese, softened
1 1/2 cups white sugar
2 teaspoons vanilla extract
1 teaspoon vanilla bean paste (optional)
2 large eggs
2 1/4 cups all-purpose flour
1 teaspoon baking powder
1/2 teaspoon baking soda
1. Preheat oven to 350 degrees. Line a 9 x 13 inch cake pan with foil and spray lightly with nonstick cooking spray.
2. In a large bowl, beat together the butter, cream cheese, and sugar until smooth and fluffy. Add the vanilla extract, vanilla bean paste (if using) and eggs and beat well.
3. Add the flour, baking powder, and baking soda, mixing until well combined.
4. Spread mixture evenly onto prepared pan. Bake for 25-28 minutes or until golden brown around edges and toothpick inserted in center comes out barely clean. Do not overbake. Cool and frost.
Vanilla Frosting1/2 cup butter, softened
2-3 cups confectioners' sugar
2-3 tablespoons whole milk
1 teaspoon vanilla extract
Beat butter until creamy. Add confectioners' sugar, milk and vanilla extract and beat until smooth. Adjust amounts of confectioners' sugar and milk until desired taste and consistency is achieved.