In a small pot, combine strawberries, sugar, and water. Cook over medium-high heat until bubbling, then simmer for 15-20 minutes until thickened. Cool in fridge.

Preheat oven to 350°F (175°C) and prepare cake pans with parchment paper.

Whisk together flour, cocoa powder, baking powder, baking soda, and salt in a medium bowl.

In a large bowl, whisk melted butter, granulated sugar, brown sugar until smooth. Add eggs one at a time, mixing well after each.

Gradually add half of the dry mixture and half of the milk to the wet ingredients. Mix until just combined, then repeat with the remaining dry mixture and milk.

Divide batter between prepared pans. Bake for 40-45 minutes until toothpick comes out clean. Cool in pans for 10 minutes before transferring to wire racks.

Beat softened cream cheese until creamy. Gradually mix in powdered sugar and vanilla extract. Fold in strawberry jam.

Level each cake layer in half. On a serving plate, layer frosting, jam, and diced strawberries between each layer.

Apply a thin layer of frosting around the cake for a crumb coat. Refrigerate for 15-20 minutes to set.

After chilling, add a generous layer of frosting on top and sides. Smooth out and create swirls if desired. Decorate with halved strawberries.