In a large bowl, beat the eggs, sugar and vanilla on high speed for 5 minutes or until thick and lemon-colored. Combine the flour, walnuts, baking powder and salt; beat into egg mixture. Beat cream until stiff peaks form; fold into batter.
Pour into two greased and floured 9-in. round baking pans. Bake at 350° for 25-30 minutes or until a toothpick inserted near the center comes out clean. Cool for 10 minutes before removing from pans to wire racks to cool completely.
In a small saucepan over medium heat, cook and stir preserves and sugar until sugar is dissolved. Set aside 1/2 cup. Brush remaining glaze over cake tops.
In a large bowl, beat butter and cream cheese until fluffy. Add confectionersâ sugar and vanilla; beat until smooth. Spread 1/2 cup frosting over one cake; top with second cake and 3/4 cup frosting. Sprinkle 1/2 cup walnuts over the top.
Brush reserved glaze over sides of cake; press remaining walnuts onto sides. Pipe remaining frosting around top edge of cake. Store in the refrigerator. Yield: 10-12 servings.