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Preheat the oven to 350 degrees.
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Place all the ingredients in a bowl and, with the help of a mixer, mix until everything is incorporated and no lumps are left.
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Pour the batter into a greased cake pan.
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Take to the oven and bake for 40 minutes or until done.
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While the cake still in the oven, make the frosting: add the butter to a bowl and mix with a mixer for 3 minutes or until fluffy. Incorporate the powdered sugar and the pistachio extract and continue mixing until light and airy. Add the food coloring and mix until everything is light green (around 1 minute).
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Remove the cake from the oven and let it cool down for 10 minutes.
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Remove the cake from the cake pan and let it cool for 25 minutes.
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Decorate it with the frosting. Optional: top it with the chopped pistachios.
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Serve and enjoy.