Preheat the oven to 350 degrees F. Grease a tube or Bundt pan.
STEP 2
Beat butter, cream cheese, and shortening together until light and fluffy, about 5 minutes.
STEP 3
Whisk flour, baking powder, and salt together in a bowl. Mix into the cream cheese mixture until well combined.
STEP 4
Beat in one egg. Add 1/2 cup sugar; mix until combined. Repeat with second egg and remaining sugar, then beat in the last egg. Add vanilla extract. Pour batter into the prepared pan.
STEP 5
Bake until a toothpick inserted in the center comes out clean, about 38 to 45 minutes.
STEP 6
Cool in the pan on a wire rack for 15 minutes. Remove the cake from the pan and cool completely. Sift powdered sugar over the cooled cake.