Preheat oven to 350 degrees. Grease and flour two 9" pans . Sift dry ingredients together and set aside. Mix wet ingredients. Slowly add dry ingredients. Beat 2 minutes. Mixture will be thin. Pour into pans. Bake for 30 -35 minutes.
Stir together key lime juice and powdered sugar. Once cake is finished baking and while still warm, poke holes in cake and drizzle with key lime juice mixture. Let the cakes completely cool. Remove from the pans.
In a mixer bowl add softened butter and softened cream cheese. Whip together adding the powdered sugar, lemon extract , vanilla extract and whipped topping. Ice cake and enjoy.