Preheat the oven:
Preheat your oven to 350°F (180°C). Grease and line two 8-inch round cake pans with parchment paper.

Make the chai cake batter:

In a stand mixer or using a hand mixer, beat the butter and oil on medium speed until well combined, with some small lumps remaining.

Add the sugar and beat on medium-high for 3-5 minutes, until light and fluffy.

Add eggs one at a time, mixing well after each addition. Stir in the vanilla extract.

Gradually pour in the buttermilk while mixing on medium speed until smooth.

In a separate bowl, combine flour, baking powder, salt, and spices. Add this mixture to the wet ingredients and mix on low speed until just combined.

Gently fold the batter with a spatula until smooth, making sure there are no streaks of flour.

Bake the cakes:
Divide the batter evenly between the two prepared pans. Bake for 25-35 minutes, or until a toothpick inserted into the center comes out clean with a few moist crumbs.
Let the cakes cool in the pans for about 10 minutes, then invert onto a wire rack to cool completely.

Make the frosting:

Beat the softened cream cheese and butter in a stand mixer on medium-high speed for 3-5 minutes, until smooth and creamy.

Gradually add powdered sugar, one cup at a time, mixing on low speed.

Once fully incorporated, add the vanilla and cinnamon, and beat on medium until fluffy and smooth.

Assemble the cake:

Trim the tops of the cakes if needed to create an even surface.

Place the first cake layer on a cake board and spread 1 cup of frosting evenly over it.

Flip the second cake layer upside down and place it on top.

Apply a thin crumb coat over the entire cake to seal in crumbs. Chill the cake in the fridge for 20 minutes.

After chilling, apply a thick layer of frosting to smooth the finish.

Decorate and serve:
Dust the cake with cinnamon, and garnish with cinnamon sticks and star anise for a decorative touch. Slice, serve, and enjoy!