Cream shortening and sugar until light and fluffy. Gradually beat in eggs, 1 at a time, beating well after each addition. Alternating with milk, beat in flour, beginning and ending with flour. Add flavoring. Pour into three floured and greased 9 inch layer cake pans. Bake at 350 degrees for 25 to 30 minutes or until done.
Cream the butter and cream cheese until light and fluffy. Beat in sugar, flavoring and nuts. Spread between layers, top and sides. You may have to add a little milk to thin icing to make it spread.