1. Preheat the oven to 175°C (350°F). Grease and flour three 20 cm (8-inch) cake pans. In a medium bowl, combine flour, baking powder, baking soda, and salt. Set aside.
2. In a large bowl, cream together the butter and sugar until light and fluffy. Add the eggs, one at a time, and beat well. Add the vanilla extract.
3. Now, alternately add the dry ingredients to the butter mixture with the sour cream and milk, beginning and ending with the dry ingredients. Mix just until combined. Fold in the chopped pistachios and white chocolate chips.
4. Divide the batter evenly among the prepared pans and level the surface. Bake for 20-25 minutes, or until a toothpick inserted into the pan comes out clean. Let cool in the pan for 10 minutes, then turn out onto a wire rack and cool completely.
5. For the frosting, in a large bowl, cream the softened butter until fluffy. Gradually add powdered sugar, cream, and vanilla extract and beat until light and fluffy.
6. Now place one cake layer on a serving plate and spread generously with frosting. Repeat with the remaining layers. Spread the remaining frosting over the entire cake and garnish with finely chopped pistachios. Refrigerate the cake for at least 30 minutes to allow the frosting to set.
