Let’s bake this beautiful Lemon Velvet Cake! First, prepare your oven and pans. Preheat oven to a moderate 325°F (160-165°C). Grease and flour two 9-inch round cake pans very well. Lining the bottoms with parchment paper is also a good idea for easy release. Set aside. Ensure eggs, buttermilk, cream cheese, and butter are at room temperature.

Prepare the dry ingredients. In a medium or large bowl, whisk together the all-purpose flour, cake flour, baking soda, baking powder, and salt until well combined and aerated. Set aside.

Begin the wet ingredients. In a large bowl (using a stand mixer with paddle attachment or handheld mixer), combine the granulated sugar, vegetable oil, butter-flavored shortening, room temperature eggs, vanilla extract, lemon extract, and lemon zest. Beat on medium-high speed until the mixture is light in color and fluffy in texture, about 3-4 minutes. Scrape down the sides and bottom of the bowl.

Alternate additions. With the mixer on low speed, add about one-third of the whisked dry ingredients to the wet mixture. Mix until just barely combined. Add about half of the room temperature buttermilk and mix on low until just combined. Repeat with another third of the dry ingredients, the remaining half of the buttermilk, and finish with the last third of the dry ingredients. Mix on the lowest speed only until the last streaks of flour disappear. Do not overmix.

Prepare the final liquid addition. In a small cup or bowl, stir together the white vinegar and the “hot lemon water” (1/3 cup hot water mixed with 2 tbsp fresh lemon juice). Gently stir this hot liquid mixture into the finished cake batter until just combined. If using yellow food coloring, stir it in now. The batter might seem slightly thin.

Divide the finished batter evenly between the two prepared 9-inch cake pans. Smooth the tops gently. Bake in the preheated 325°F oven for 25-30 minutes. The cakes are done when the centers are just set (spring back lightly when touched) and a wooden toothpick inserted into the center comes out clean. The lower temperature helps create a tender crumb.

Let the cakes cool in their pans on wire racks for about 10 minutes. Then, carefully run a thin knife around the edges and invert the cakes onto the wire racks. Peel off parchment if used, and let them cool completely before frosting.

While the cakes cool, make the Lemon Cream Cheese Frosting. Ensure cream cheese and butter are properly softened. In a large bowl using an electric mixer (stand mixer with paddle or handheld), beat the softened cream cheese and softened butter together on medium-high speed for about 3-5 minutes until completely smooth, light, and fluffy, with no lumps. Scrape down the bowl well.

Beat in the vanilla extract, lemon extract, and fresh lemon zest until combined. Turn the mixer speed down to low. Gradually add the sifted powdered sugar, about 1 cup at a time, mixing until just incorporated after each addition. Once all the initial 4 cups of sugar are added, increase the speed to medium-high and beat for another 2-3 minutes until the frosting is very smooth and creamy. Add the optional yellow food coloring now if using. Assess the consistency and sweetness – if it seems too thick, beat in 1-2 teaspoons of fresh lemon juice (this also adds tang). If it needs more sweetness or structure (unlikely), beat in up to 1 more cup of sifted powdered sugar. Beat until perfectly smooth and fluffy.

Assemble the completely cooled cake. Level the tops of the cake layers with a serrated knife if desired. Place one cake layer onto your serving plate or cake stand. Spread a generous layer of the lemon cream cheese frosting evenly over the top (about 1.5 cups).

Carefully place the second cake layer on top (upside down is good for a flat top). Use the remaining frosting to cover the top and sides of the entire cake. Smooth the frosting with an offset spatula or create decorative swirls. Garnish with fresh thin lemon slices if desired. Chill the cake for at least 30-60 minutes to allow the frosting to set before slicing and serving