Begin by creating the Moscato wine reduction. Pour 2 ¾ cups of Moscato wine into a medium saucepan and set it over medium heat. Allow the wine to simmer gently, reducing it by half for about 15-20 minutes. Once reduced, transfer to a bowl and refrigerate until cooled.
Preheat your oven to 350°F (175°C) and grease two 9-inch round cake pans. In a large mixing bowl, cream together 1 cup of unsalted butter and 1 ½ cups of granulated sugar until light and fluffy. Beat in the eggs, one at a time, along with 1 teaspoon of vanilla extract.
In another bowl, whisk together 2 ½ cups of all-purpose flour, 1 tablespoon of baking powder, and ½ teaspoon of salt. Gradually add this dry mixture to the wet ingredients, alternating with 1 cup of the cooled Moscato wine reduction. Mix just until combined.
Divide the batter evenly between the two prepared cake pans. Bake for 25-30 minutes or until golden and a toothpick inserted comes out clean. Allow the cakes to cool in the pans for 10 minutes before removing to a wire rack to cool completely.
While the cakes cool, prepare the Moscato syrup. In a small saucepan, heat ½ cup of the Moscato wine reduction over medium heat until it thickens slightly, about 5 minutes.
To make the strawberry buttercream, beat 1 cup of unsalted butter until creamy. Gradually add 4 cups of powdered sugar and mix on low speed. Add ½ cup of powdered freeze-dried strawberries and adjust with milk until the frosting is spreadable.
Once the cake layers have cooled, assemble your Strawberry Moscato Layer Cake. Place one layer on a serving plate, drizzle with Moscato syrup, and spread with strawberry buttercream. Repeat with the second layer, drizzling syrup and adding frosting.
Frost the top and sides of the cake with the remaining strawberry buttercream. Decorate with fresh strawberries. Slice and enjoy!