01 - Preheat the oven to 350°F. Grease and line two 8-inch round cake pans with parchment paper.
02 - In a medium bowl, whisk together the gluten-free flour blend, baking powder, baking soda, and salt. Set aside.
03 - In a large bowl, beat the sugar, butter, and oil together until light and fluffy, about 2-3 minutes.
04 - Add eggs one at a time, beating well after each addition. Mix in the vanilla extract.
05 - Alternately add the flour mixture and milk to the wet ingredients, beginning and ending with flour. Mix until just combined—do not overmix.
06 - Gently fold in ½ cup rainbow sprinkles with a spatula.
07 - Divide the batter evenly between the prepared pans. Smooth the tops. Bake for 28-32 minutes, or until a toothpick inserted in the center comes out clean.
08 - Let cakes cool in pans for 10 minutes, then turn out onto a wire rack to cool completely.
09 - Beat the 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.
10 - Place one cake layer on a serving plate. Spread a generous layer of frosting on top. Place the second layer on top and frost the top and sides of the cake. Decorate with extra sprinkles as desired.