Preheat your oven to 350°F (175°C).
In a mixing bowl, whip softened butter and granulated sugar until the mixture is creamy and slightly gritty.
Add the eggs and milk, then mix until fully combined and smooth.
Add flour, cinnamon, nutmeg, baking powder, and baking soda. Mix on low speed, then increase speed as needed until no dry flour remains.
Gently fold in the finely shredded carrots using a wooden spoon or spatula until evenly distributed.
Liberally grease a Bundt pan with cooking spray or shortening.
Pour the batter into the prepared pan, smooth the top, and tap the pan on the counter to release air bubbles.
Bake for 45–55 minutes, and let it cool for 10 to 15 minutes.
For the frosting, beat together cream cheese, butter, and vanilla until smooth and creamy.
Gradually add powdered sugar and continue beating until the frosting is fluffy and fully combined.
Pipe over the top ridges of the Bundt cake and sprinkle chopped pecans on top if desired, slice, and enjoy