Pre-heat the oven to 160C (320F) fan-forced and grease and line two 20cm (8") cake tins with baking paper.
Place the butter in a food processor and process until smooth.
Scrape down the sides and add the sugar and cinnamon and process until creamy.
Add the eggs one at a time, mixing between each addition.
Finally, add the flour and baking powder and process until just combined, scrape down the sides and process just a little more.
Divide the batter between the cake tins and smooth out the top.
Bake for 40-50mins or until a cake tester inserted in the middle comes out clean.
Rest for 5 minutes in the tin then transfer the cakes to wire racks to cool completely.
To make the icing, beat the butter in the bowl of an electric mixer until smooth and soft.
Add the icing sugar and cinnamon and mix on low until combined then increase the speed.
Add a little milk at a time and keep beating until the icing is spreadable and fluffy.
Place one cake on a cake plate and spread with ⅓ of the icing.
Place the second cake on top (you may need to trim one or both of the cakes to flatten) and ice.
Sprinkle with cinnamon and lavender to serve.