Preheat your oven to 350°F (175°C) and prepare three 8-inch round cake pans by greasing and lining them with parchment paper.

Bring unsalted butter, eggs, and cream cheese to room temperature for about 30 minutes.

In a medium bowl, whisk together flour, baking powder, and salt.

In a large mixing bowl, cream butter and sugar until light and fluffy, about 3-5 minutes. Then, beat in eggs one at a time with vanilla.

Gradually add the dry ingredients to the wet mixture, alternating with milk until just combined.

Divide the batter among the prepared pans and bake for 22-27 minutes.

Let the cake layers cool in pans for 10 minutes before transferring to wire racks.

For cherry filling, simmer cherries with sugar and lemon juice until thickened for 10-15 minutes; cool completely.

Beat cream cheese until smooth, add powdered sugar and optional chopped cherries.

Assemble the cake by layering frosting and cherry filling between cake layers, finishing with frosting on top.

Garnish with whole cherries and serve.