Preheat oven to 350 degrees. Line an 8 x 8 inch cake pan with parchment paper.

Cream butter and add 1 cup of sugar gradually. Add eggs one by one, beating after each addition.

Mix the sour cream with the baking soda and vanilla and add to the creamed ingredients.

Sift together the flour, baking powder and salt. Gradually add to the creamed ingredients.

Turn half of the batter into the prepared pan. Mix together 1/4 cup sugar, cinnamon and chopped nuts. Sprinkle half of the nut mixture over the batter. Top with the rest of the batter and sprinkle the other half of the nut mixture on top.

Bake for 25 to 30 minutes or until toothpick comes out clean. It takes 28 minutes in my oven.

Serve hot, warm or cooled. Enjoy!