To get started, preheat your oven to 350 degrees Fahrenheit (175 degrees Celsius). Grease and flour a fluted tube pan, such as a Bundt pan. This will ensure that your cake doesn't stick and comes out perfectly.
Next, combine the cream cheese, sugar, and egg in a bowl, mixing until well blended. Set this mixture aside while you prepare the rest of the cake.
In a separate bowl, combine the flour, sugar, baking soda, cinnamon, and salt for the cake. Add the oil and eggs, mixing until moistened. Fold in the grated carrots, which give the cake its signature flavor and color.
Bake the cake in the preheated oven for about 55 minutes, or until a toothpick inserted into the center comes out clean. Cool the cake for 10 minutes, and then remove it from the pan. Finally, sprinkle powdered sugar over the top of the cake for an elegant and sweet finishing touch.
