For the Cake:

To make the strawberry reduction, rinse the berries and pulse in a food processor or blender until pureed. You should have about 2 cups of puree.
In a medium-sized saucepan, cook the puree over medium-low heat. Stir frequently and allow the mixture to come to a slow rolling boil. Continue cooking until it has thickened and reduced to 3/4 cup. This should take about 20-30 minutes. Remove from heat and transfer to a bowl to cool to room temperature.
Preheat the oven to 350°F. Prepare three 8-inch round baking pans by lining the bottom with parchment paper and greasing the sides.
In a large mixing bowl, combine the wet ingredients: oil, butter, eggs, sour cream, and vanilla. Beat until very well combined.
Next, beat in the sugar until well mixed. Then add the strawberry puree and a couple of drops of pink food coloring, beating until well combined.
In a separate bowl, combine the remaining dry ingredients. Alternate adding the dry ingredients with the milk, half at a time, and beat just until combined. Then stir the batter with a spatula to ensure it’s well mixed.
Divide the batter evenly between the prepared pans, about 1 2/3 cup of batter per pan. Bake at 350°F for 18-20 minutes. Cool completely.

For the Frosting:

Pulse the freeze-dried strawberries in a food processor and grind into a fine powder.
Place your mixing bowl in the freezer or refrigerator for 5-10 minutes before starting.
Cut the cream cheese into 1-inch cubes and beat on medium-high speed for 2-3 minutes until the cream cheese is smooth and free of lumps. Scrape down the sides of the bowl occasionally. Slowly add in one cup of heavy whipping cream and continue beating until the cream cheese resembles a liquid mixture.
Continue to add the remaining heavy whipping cream and beat on medium-high speed until soft peaks form.
Finally, add the powdered strawberries, powdered sugar, and vanilla extract and beat until stiff peaks form.

To Assemble and Decorate:

Use a cake leveler to cut the domes off the top of the cake. Place a dollop of frosting on your cake board and place the bottom layer of cake on top of that.
Place about 2 cups of frosting in a large piping bag fitted with a large open round tip, or simply cut off the end of the piping bag. Pipe a layer of frosting on top of the leveled cake, starting at the outside edge and working your way into the middle. Spread evenly with an offset spatula. Place another layer on top and repeat the frosting with the second layer, then place the final layer on top.
Use your piping bag to fill in any gaps between the layers and to create a rough crumb coat. Using an offset spatula, wipe away the excess frosting, leaving just enough to coat the outside of the cake. Do not mix your crumb coating frosting back into your icing if it has cake debris in it.
Separate out 1 ¼ cups of frosting to decorate with. Use the remaining frosting to decorate the sides. Fill a large piping bag, cut off the edge of the bag, and pipe around the outside edge of the cake, working from the bottom up. Gently smooth with an offset spatula. Decorate and garnish with fresh strawberries.