Preheat your oven to 350°F and grease a 9x13-inch baking dish and set it aside.
In a medium bowl, combine flour, baking powder, salt, and baking soda, and set aside.
Cream the butter and dark brown sugar in a stand mixer fitted with the paddle attachment until light and fluffy.
Scrape down the sides of the bowl.
Add the eggs one at a time, ensuring each is fully incorporated before adding the next.
Mix in the milk and vanilla until well combined, then scrape the sides of the bowl.
Gradually add half of the flour mixture, mixing until combined.
Follow with half of the sour cream, then repeat with the remaining flour mixture and sour cream.
Scrape the sides as needed.
Pour the batter into the prepared dish, smoothing the top.
Bake for 30-40 minutes, or until a toothpick inserted into the center comes out clean.
Allow the cake to cool completely on a wire rack.
For the frosting, melt the butterscotch chips according to the package instructions, and let them cool for about 5 minutes.
In a large bowl, whip the butter with an electric mixer until smooth.
Gradually mix in the melted butterscotch chips, then add powdered sugar a little at a time, mixing until combined.
Add vanilla and milk, then whip on medium-high speed for 3 minutes until the frosting is light and fluffy.
Once the cake is fully cooled, spread the frosting evenly over the top.