For a brief time I lived in Sequim, WA which is considered the lavender capital of the world. Each year in July there is a huge lavender festival. I found this recipe in a cookbook I have and thought it sounded interesting. If you ever get the chance to visit Sequim...do so! It's a great little town and I miss it.
Preheat the oven to 350 degrees. Grease and flour two 8-inch loaf pans. Mix the flour, baking soda, and salt in a medium bowl. Pulse 1/2 C sugar with the lavender in a food processor until the lavender is ground. In a large bowl beat the butter, lavender sugar, remaining 1 1/2 C sugar, and the vanilla until fluffy. Beat in the eggs one at a time. In a small bowl mix sour cream and milk on low speed. With an electric beater on low speed add the flour mixture and the sour cream mixture alternately to the egg mixture beginning and ending with the flour. Pour the batter into the pans and bake for 55 minutes. Cool for 10 minutes. Remove from pans. Cool on wire racks.
For the frosting, microwave the water and lavender for 30 seconds on high. Let steep for 5 minutes. Drain, reserving 4 tsp of lavender water and discard the flowers. Whisk together the reserved lavender water, the confectioners' sugar, and few drops of food coloring. Drizzle the frosting over the cakes.