Preheat the oven to 350 degrees F. Grease and flour two 9-inch round cake pans.
In a medium bowl, sift together the flour, baking powder, and salt; set aside.
In a large bowl, cream together the butter and sugar until light and fluffy. Beat in the eggs one at a time, then stir in the sour cream and Key lime juice. Beat in the sifted ingredients alternately with the lime zest.
Divide the batter into the prepared pans and bake for 25 to 30 minutes, or until a toothpick inserted into the center of the cake comes out clean. Let cool in the pans for 10 minutes, then turn out onto wire racks to cool completely.
To make the frosting, combine the powdered sugar, melted butter, Key lime juice, and lime zest. Beat until smooth and spreadable.
Spread the frosting on the cooled cake and serve.
Interesting Facts
Key limes are a variety of lime that are smaller and more tart than the common Persian lime.
Key lime juice is a key ingredient in many dishes, including the famous Key lime pie.
The Key lime is named after the Florida Keys, where it is believed to have been brought to the United States from the West Indies in the mid-1800s.