In a large mixing bowl, cream butter, and 1 cup sugar until light and fluffy.
Add 1 egg at a time, beating well after each addition.
Beat in vanilla.
Combine flour, baking powder, baking soda, and salt.
Add flour mixture and sour cream, alternately, beating just enough after each addition to keep the batter smooth.
Spoon a third of the batter into a greased cake tube pan. [Tip: Can be baked in a Bundt pan or a square baking pan.]
Combine the cinnamon, nuts and 1 cup of sugar. Sprinkle a third of the cinnamon and nut mixture over the batter in the pan.
Repeat layers two more times.
Bake at 350º for 45 minutes to 1 hour, or until a toothpick inserted in the center comes out clean.
Cool for 15 minutes before removing from the pan. Place on a wire rack to cool completely.