Preheat oven to 350°F. Spray a nonstick bundt pan with vegetable oil cooking spray or grease with vegetable oil. (Alternately, butter it and dust with flour.)
Cream the butter and sugar in a bowl with handheld beaters until light and fluffy; add the egg and beat until incorporated. In a separate bowl, combine the molasses with the water; slowly whisk into the butter mixture.
Add the dry ingredients and beat on low speed (or whisk) until smooth.
Scrape the batter into the prepared pan. Bake on the center rack of the preheated oven for 50 minutes or until a toothpick inserted into the middle of a loaf comes out with a few moist crumbs clinging to it. Let cool on a cooling rack for 5 – 10 minutes, then carefully remove from the pan and continue cooling directly on the rack. Dust with powdered sugar before serving. Slice and serve with homemade whipped cream or lemon curd!
MAKE AHEAD: This cake is even better the second day. It will keep, wrapped tightly in plastic wrap, at room temperature for 3 – 4 days.