Mix dry ingredients. In a medium bowl, whisk together ground pistachios, flour, baking powder, and salt.
Cream butter and sugar. In a large bowl, beat butter and sugar with an electric mixer until light and fluffy, about 3-4 minutes. Don't skimp on this step – we're building the foundation of cake greatness here!
Add eggs. Beat in eggs one at a time, ensuring each is fully incorporated before adding the next. The batter might look slightly curdled – don't worry, it'll come together.
Add flavorings. Mix in vanilla and rosewater. Start with less rosewater and taste – you want floral notes, not a perfume counter.
Alternate dry and wet. With mixer on low, add dry ingredients in three parts, alternating with buttermilk. Begin and end with dry ingredients, mixing just until combined. Overmix and you'll have tough cake – and nobody wants that tragedy.
Add color if desired. If using food coloring, add a few drops and gently fold until you achieve a subtle pistachio green.
Divide and bake. Divide batter between pans and smooth tops. Bake 30-35 minutes or until a toothpick inserted in center comes out with a few moist crumbs.
Cool properly. Let cakes cool in pans for 10 minutes, then invert onto racks to cool completely. Seriously – completely. Warm cake + frosting = disaster.