Preheat the oven to 350°F.

Grease and flour two 8-inch round cake pans; set aside.

With an electric mixer, cream 3/4 cup of the butter and sugar in a large bowl until light and fluffy, about 4 minutes.

Add 2 teaspoons of the orange extract and eggs and beat well.

In a separate bowl, mix flour, baking powder, and salt together.

Add flour mixture to sugar mixture a bit at a time, alternating it with the milk and beating well after each addition; batter should be thick and fluffy.

Pour batter into prepared pans and bake until a toothpick inserted into the center of the cake comes out clean, 40 to 45 minutes.

Set aside to let cool for 15 minutes, then loosen edges and turn cakes out onto a rack to let cool completely.

To make the frosting, cream remaining 1/2 cup butter in a mixing bowl.

Sift in powdered sugar, then add orange juice, remaining 1 teaspoon orange extract and orange zest.

Blend completely, adding more powdered sugar or orange juice as desired.

Frost top of one cake, then top with second layer and frost all over.

Slice cake into wedges and serve.