Preheat oven to 350 degrees F. Lightly grease 2- 9" cake pans.
In a large bowl, combine cake mix and jello. Add pureed strawberries, eggs oil and water. Beat at medium speed with an electric mixer until smooth. Pour into prepared pans and bake for appox. 20 minutes or until wooden pick inserted in the center comes out clean.
Let cool for 10 minutes, then remove from pans and allow to cool completely on wire rack.
To make frosting:
In a large bowl, beat butter and cream cheese at medium speed with electric mixer until creamy. Beat in pureed strawberries and extract. Gradually add in powdered sugar beating until smooth.
Spread frosting in between layers and then on top and sides of cake. Garnish with fresh strawberries.