Preheat oven to 350 degrees F. Line the bottom of two 8-inch cake pans with parchment paper and spray with nonstick spray. Set aside.
Cream butter and sugar: In a large mixing bowl with electric beaters or bowl of a stand mixer fitted with the paddle attachment, combine the butter and sugar. Cream together for a few minutes until light and fluffy.
Add vanilla and then eggs, mixing in one at a time until combined. Add sour cream and ½ cup cookie butter and mix until well combined.
Dry ingredients: In a bowl, combine the flour, baking powder, and salt.
Finish batter: With the mixer on low speed, alternately add the dry mixture and the milk, starting and ending with the dry mixture.
Bake: Pour the batter into prepared cake pans and bake for about 22-27 minutes, or until a toothpick inserted in the center of the cake comes out clean (or with a few moist crumbs).
Cool cake in the pan for a few minutes, then invert cakes onto a wire cooling rack to cool completely.
Frosting: In a stand mixer fitted with the paddle attachment, combine the butter, 2 ½ cups powdered sugar, and the reserved ½ cup cookie butter and mix until smooth. Add a splash of milk and additional powdered sugar as needed, mixing for several minutes until you reach a fluffy but thick and spreadable frosting consistency.
Assemble: Melt the remaining cookie butter in the microwave for a few seconds until runny (make sure the aluminum seal from the container is off). Add one cake layer to a serving plate or 8’’ cake board. Add a thin layer of buttercream frosting, and smooth most of the melted cookie butter on top (I like to reserve a spoonful to drizzle on the cake at the end), leaving a 1’’ border around the cake.
Top with second cake layer. Pipe a line of frosting into the crack between the two layers of cake. Frost cake completely with a very thin layer of frosting—the crumb coat. Stick in the fridge for 20 minutes or freezer for 10 minutes. Then, add another layer of frosting over the crumb coat.
Decorate: Pipe large decorative frosting swirls around the outer top edge of the cake. Drizzle a spoonful of reserved melted cookie butter in lines across the top of the cake. Sprinkle crushed Lotus Biscoff cookie crumbs on top.
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Notes
Make Ahead Instructions: Make the frosting ahead of time and store in the fridge. Remove from fridge for 30 minutes, then re-whip, adding a splash of milk if needed, until smooth and fluffy. The cake layers can be made ahead and frozen, covered well, for up to 3 months. Freezing Instructions: The assembled cake can be frozen for up to 3 months. Flash freeze uncovered in the freezer for 30 minutes, then cover very well with plastic wrap and aluminum foil and freeze for up to 3 months. The baked cake layers and frosting could also be frozen seperatly and assembled after thawing the frosting.