Preheat your oven to 350°F (175°C). Grease and flour a 9-inch round cake pan or line it with parchment paper.
Wash and pat dry the fresh cranberries. If desired, chop them roughly.
In a large mixing bowl, cream together the softened butter and granulated sugar until light and fluffy. Add eggs, one at a time, beating well after each addition. Stir in the vanilla extract.
In a separate bowl, whisk together the flour, baking powder, baking soda, and salt.
Gradually add the dry ingredients to the wet ingredients, alternating with sour cream. Mix until just combined. Gently fold in the cranberries and chopped walnuts, if using.
Pour the batter into the prepared cake pan and spread it evenly. Bake in the preheated oven for 40-45 minutes, or until a toothpick inserted into the center comes out clean.
Once baked, allow the cake to cool in the pan for about 10 minutes before transferring it to a wire rack to cool completely. Optionally, dust the cooled cake with powdered sugar before serving
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