Preheat oven to 350. Beat butter in large bowl with electric mixer on medium speed 1 minute. Gradually add sugar, beating well after each addition. Beat an additional 5 minutes or until very light and fluffy.
Add cream cheese and vanilla; beat 1 minute.
Add eggs, one at a time, beating well after each addition.
In a seperate bowl combine flour, backing powder, and salt. Add to the butter mixture and beat 1 minute or until well blended.
Pour batter into a greased and floured 12-cup fluted tube pan or 10-inch tube pan.
Bake 1 hour or until golden brown. Cool 10 minutes. Loosen from sides of pan with spatula or knife and gentle remove cake. Cool completely on wire rack.