Combine all the cake ingredients except the apricot preserves and beat at medium speed for two minutes.
Pour into two greased and floured 8"round pans, and bake for 30-35 minutes, or until a toothpick inserted near the center comes out clean; let cool in pans 10 minutes, then remove from pans and cool on wire racks.
To make the frosting, combine everything in a medium sized bowl and beat with a mixer until spreading consistency.
To assemble, top one layer with the apricot preserves; top with second layer. Spread the top and sides with frosting.