01 - Preheat oven to 350°F. Grease two 8-inch round cake pans and line bottoms with parchment paper.
02 - Whisk together gluten-free flour blend, baking powder, baking soda, and salt in a medium bowl. Set aside.
03 - Beat sugar, butter, and oil in a large bowl until light and fluffy, approximately 2–3 minutes.
04 - Add eggs one at a time, beating thoroughly after each addition. Mix in vanilla extract.
05 - Alternately add flour mixture and milk to wet ingredients, starting and ending with flour. Mix until just combined—avoid overmixing.
06 - Gently fold ½ cup rainbow sprinkles into batter using a spatula.
07 - Divide batter evenly between prepared pans. Smooth tops with spatula.
08 - Bake for 28–32 minutes until a toothpick inserted in center comes out clean.
09 - Let cakes cool in pans for 10 minutes, then transfer to wire rack to cool completely.
10 - Beat softened butter until creamy. Gradually add powdered sugar, beating until smooth. Mix in vanilla, salt, and 2 tablespoons milk. Add more milk if needed for spreading consistency.
11 - Place one cake layer on serving plate. Spread frosting layer on top. Position second layer and frost top and sides of cake completely.
12 - Press extra sprinkles onto sides and top as desired. Slice and serve immediately.