Preheat your oven to 350°F and line two 9-inch round cake pans with parchment paper. I tap the bottoms to make sure that paper sticks properly—nothing derails a family baking project like cake stuck to the pan bottom.
Cream the butter and sugar together for exactly three minutes until the mixture looks pale and fluffy. This aeration step is why your cake rises instead of staying dense. I always scrape the bowl halfway through because mixer beaters miss the corners.
Add eggs one at a time, beating for 20 seconds between each egg. The batter should look smooth and slightly glossy after the last egg incorporates—that's your sign the emulsion worked correctly.
Whisk together flour, baking powder, baking soda, salt, and vanilla powder in a separate bowl. Alternate adding dry mixture and milk to the wet ingredients, starting with flour and ending with flour. This prevents overmixing, which toughens the crumb.
Divide the batter into three equal bowls using a kitchen scale if you have one—honestly, I eye it and it's fine, but precision here prevents one 4th of july red white blue cake family recipe layer from baking faster than others. Tint the first bowl bright red, the second white (leave it plain), and the third blue.
Pour the red batter into the first prepared pan and smooth the surface with an offset spatula. Pour the white batter on top as your middle layer, then carefully add the blue batter last. I pour each one into the center first, then gently spread outward so the previous layer doesn't mix up.
Bake for 38 to 42 minutes until a toothpick inserted in the center comes out with just a few moist crumbs attached. The tops should spring back when you touch them gently—this patriotic layered cake kids expect to stay moist, not dry, so don't overbake.
Cool the cakes in their pans for 15 minutes, then turn them out onto wire racks to cool completely. This waiting period is maddening because the smell fills your whole house, but rushing to frost warm cake means your frosting melts into a puddle.