Preheat the oven to 350°F. Spray a 9x13 baking dish with baking spray, set aside.
In a medium-sized bowl, stir together the flour, baking powder, salt, and baking soda, set aside.
Cream together the butter and dark brown sugar in the body of a stand mixer with the paddle attachment until well incorporated and fluffy, scrape down the sides.
Add the eggs one at a time, waiting until the first egg is fully combined until adding the next.
Next add in the milk and vanilla, stir until combined. Scrape down the sides.
Add half of the flour mixture, stir it in until combined.
Add half of the sour cream, stir it in until combined. Repeat with the remaining flour mixture and sour cream. Scrape down the sides as needed.
Spread the batter into the prepared baking dish and smooth out the top. Bake for 30-40 minutes until a toothpick inserted into the center comes out clean. Let it cool completely on a wire rack.
While the cake cools, make the frosting. Melt the butterscotch chips per the directions on the bag in a small bowl, let it sit out on the counter for about 5 minutes before making the frosting so it isn’t super hot.
Add the butter to a large bowl and whip until smooth with an electric hand mixer.
Mix in the melted butterscotch chips. Add the powdered sugar a little at a time until fully mixed in, scrape down the sides.
Add the vanilla and milk, stir it in. Turn the mixer on to medium-high and whip it for 3 minutes until light and fluffy.
Once the cake is cooled all the way, top with the frosting and smooth it out. Cut and serve.