• Step 1: Preheat your oven to 350°F (175°C). Grease and flour three 9-inch round cake pans.
• Step 2: In a medium bowl, whisk together the flour, baking powder, and salt. Set aside.
• Step 3: In a large bowl, cream the butter and granulated sugar together until light and fluffy, about 2-3 minutes. Beat in the eggs one at a time, then stir in the vanilla extract.
• Step 4: Add the flour mixture to the wet ingredients in three additions, alternating with the milk, mixing just until combined after each addition.
• Step 5: Divide the batter evenly between three bowls. Color one bowl red with red food coloring, one bowl blue with blue food coloring, and leave the third bowl plain for the white layer.
• Step 6: Pour the red, white, and blue batters into the prepared cake pans and bake for 18-20 minutes, or until a toothpick inserted in the center comes out clean. Allow the cakes to cool in the pans for 10 minutes, then transfer to a wire rack to cool completely.
• Step 7: Make the cream cheese frosting: In a large bowl, beat the cream cheese and butter together until smooth and creamy. Gradually add the confectioners’ sugar and vanilla extract, beating until fully incorporated and the frosting is light and fluffy.
• Step 8: Place the red cake layer on your serving platter or cake stand. Spread a layer of cream cheese frosting on top. Add the white cake layer and top with more frosting. Finally, add the blue cake layer and frost the top and sides of the cake with the remaining cream cheese frosting.
• Step 9: Refrigerate the cake for at least 2 hours before serving to allow the frosting to set.