The first time I did shredded carrots I used the larger side of the grater. Though it didn't dawn on me to use the small side before I baked the cake, it still got rave reviews so I guess it didn't throw anyone off.
But now I use the small grating holes...
I wonder if the larger shreds helped keep the cake super-moist?
I have done them both ways and IMO it's worth it to grate/shred them fresh. The already shredded carrots in the bag don't add as much moisture therefore the cake is usually pretty dry and the carrots are tough. 
Even my family knew the difference 
so the vote here is to do it yourself - shredding/grating those carrots!!! 
The easiest way to do this is with either a food processor or a blender. You won't be sorry. 
Good luck! 
LadyMike
and the cake turned out great.
for what it is worth
Alton Brown says to use freshly grated, and do NOT put them through the food processor or it will bring out TOO much juice.....
i do whatever HE says,
Sally
OK I'm weird--I replace some of the liquid in the recipe for carrot baby food. I have texture issues 
that way I get all the flavor and none of the texture 
I actually throw the carrots into my food processor (its a larger one) and it grinds them up pretty good so you just have tiny pieces instead of long grated strands. Once they are baked into the cake you don't have that "carrot texture".
Not sure about Alton but it works great for me.
I actually throw the carrots into my food processor (its a larger one) and it grinds them up pretty good so you just have tiny pieces instead of long grated strands. Once they are baked into the cake you don't have that "carrot texture".
Not sure about Alton but it works great for me.
I also use the processor and haven't had any issues. I just pulse the baby carrots until I get the texture I want in seconds.
The recipe that I use calls for baby food carrots so there is no grating or shredding. It turns out moist and yummy every time.
I've been meaning to add this to the recipe section but have never gotten around to it. I guess now is a good time. In the meantime, here's the recipe.
4 Eggs
2 1/2 Cups Flour
2 Cups Sugar
2 Teaspoons Cinnamon
2 Teaspoons Baking Soda
1 Teaspoon Salt
1 Cup Vegetable Oil
3 Jars (4 1/2 ounce) Strained Baby Food Carrots
1/2 Chopped Walnuts
Beat Eggs. Add flour, sugar, cinnamon, baking soda, salt, oil, and carrots. Stir in walnuts. Bake 30-35 minutes at 350 degrees.
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