Preheat your oven to 350°F (175°C) and grease and flour two 9-inch round cake pans.

In a large bowl, cream together ½ cup softened butter and 1 ½ cups granulated sugar until light and fluffy, about 3 to 4 minutes.

Add the eggs one at a time, mixing thoroughly after each addition. Stir in 1 teaspoon of vanilla.

In another bowl, whisk together 2 cups flour, 3 ½ teaspoons baking powder, and ½ teaspoon salt.

Gradually add the dry ingredients to the butter-egg mixture, alternating with 1 cup milk. Mix until just combined; avoid overmixing.

Divide the batter evenly between the prepared pans and smooth the tops.

Bake for 25 to 30 minutes, or until a toothpick inserted into the center comes out clean.

Allow the cakes to cool in the pans for 10 minutes, then transfer them to wire racks to cool completely.

For the frosting, beat 1 cup softened butter until creamy.

Gradually add in 2 cups powdered sugar, then mix in 2 teaspoons of vanilla and 1 to 2 tablespoons of milk until the frosting is light and spreadable.

Level the cake layers if necessary. Spread frosting between the layers, then frost the top and sides.

Finish by sprinkling sparkling sugar lightly over the top for a festive touch.

Slice and serve.