01 - Preheat the oven to 350°F (175°C). Grease and flour two 8-inch round cake pans, or line them with parchment paper.
02 - In a medium bowl, whisk together the all-purpose flour, baking powder, and salt. Set aside.
03 - In a large bowl, cream together the softened butter and granulated sugar using an electric mixer until light and fluffy.
04 - Add the eggs one at a time, beating well after each addition until fully incorporated.
05 - Stir in the vanilla extract and cotton candy flavoring until evenly distributed.
06 - Gradually add the dry ingredient mixture, alternating with the whole milk, beginning and ending with the dry ingredients. Mix until just combined — do not overmix.
07 - Divide the batter evenly into two separate bowls. Tint one portion pink and the other blue using gel food coloring. Gently fold each until the color is uniform throughout.
08 - Pour each colored batter into a prepared pan. Bake for 28–32 minutes, or until a toothpick inserted into the center of each layer comes out clean.
09 - Let the cakes cool in their pans for 10 minutes, then turn them out onto wire racks to cool completely.
10 - Beat the softened butter with an electric mixer until creamy. Add the sifted powdered sugar in batches, beating well after each addition. Pour in the cotton candy flavoring and 3–4 tablespoons of milk or cream, mixing until the frosting reaches a smooth, spreadable consistency.
11 - Divide the buttercream evenly into two portions. Tint one part pink and the other part blue with gel food coloring.
12 - Level the cake layers with a serrated knife if necessary. Place one layer on a serving plate and spread with one color of buttercream. Top with the second layer and frost the entire cake using alternating swirls of pink and blue buttercream.
13 - Decorate with fresh cotton candy and sprinkles just before serving to prevent the cotton candy from melting.