Preheat oven to 350 degrees. Grease and flour a rectangle cake pan and set aside.
Combine sugar, butter, milk, eggs, and vanilla extract in a mixing bowl and stir until uniform.
In another bowl, whisk together flour, baking powder, and sea salt. Add this dry mixture to the wet mixture and stir until just combined. Do not over mix.
Mash or puree strawberries to your desired consistency then stir into cake batter. If adding freeze-dried strawberries, crush or pulse in a blender to form a powder then mix into batter, as well. Batter will be thick.
Spread cake batter into prepared pan. Place on middle oven rack and bake for 30 minutes or until a toothpick inserted into the center of the cake comes out clean. Meanwhile, prepare the frosting.
Making the Cream Cheese Frosting
Sift powdered sugar into a bowl then add in cream cheese, butter, and vanilla extract. Beat for about 1 ½ minutes or until smooth, glossy, and uniform.
While frosting mixes, dice strawberries into about ⅓ inch pieces. Fold diced strawberries into frosting by hand. Slice additional strawberries to decorate cake, if desired.
Frost cake once it cools to room temperature. Spread frosting over top almost to edges then place strawberry slices over top.
Notes
To make strawberry puree: hull strawberries and cut in halves. Add to a food processor or blender with one tablespoon of water. Pulse until smooth.Because of the cream cheese frosting, this cake should be refrigerated if not consumed right away.