Preheat the oven to 350°F (175°C). Grease and flour two 9-inch round cake pans.
In a bowl, combine 2 and a half cups of all-purpose flour, 2 and a half teaspoons of baking powder, and a pinch of salt.
In a separate large bowl, cream 1 cup of unsalted butter and 2 cups of granulated sugar until fluffy.
Add eggs one at a time, then mix in 1 teaspoon of vanilla extract. Alternately add the dry ingredients and 1 cup of whole milk to the wet mixture.
Gently fold in 2 cups of finely chopped fresh strawberries. Divide the batter into the prepared pans and bake for 25-30 minutes.
For the strawberry reduction, in a saucepan, combine 2 cups of fresh strawberries (hulled and halved), 1/2 cup of granulated sugar, and 1 tablespoon of lemon juice. Simmer over medium heat until strawberries break down and the mixture thickens into a syrup.
Let it cool, then strain to remove seeds, resulting in a strawberry reduction.
For the cream cheese frosting, in a bowl, beat 1 cup of softened cream cheese, 1/2 cup of softened unsalted butter, and 4 cups of powdered sugar until smooth. Fold in 1 cup of the cooled strawberry reduction.
Once the cakes are cooled, spread the strawberry cream cheese frosting between layers and over the top.
Garnish the cake with fresh strawberries.
Slice and serve, savoring the delightful combination of moist strawberry-infused layers and the rich cream cheese frosting with a hint of strawberry reduction.