01 - Preheat oven to 350°F. Grease and line two 8-inch round cake pans with parchment paper.
02 - In a medium bowl, whisk together gluten-free flour blend, baking powder, baking soda, and salt. Set aside.
03 - In a large bowl, beat sugar, butter, and oil together until light and fluffy, approximately 2-3 minutes.
04 - Add eggs one at a time, beating well after each addition. Mix in vanilla extract.
05 - Alternately add flour mixture and milk to the wet ingredients, beginning and ending with flour. Mix until just combined without overmixing.
06 - Gently fold in ½ cup rainbow sprinkles using a spatula.
07 - Divide batter evenly between prepared pans. Smooth the tops.
08 - Bake for 28-32 minutes until a toothpick inserted in the center comes out clean.
09 - Let cakes cool in pans for 10 minutes, then turn out onto a 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 additional milk if needed for spreading consistency.
11 - Place one cake layer on a serving plate. Spread a generous layer of frosting on top. Position second layer and frost top and sides of the cake.
12 - Decorate with extra sprinkles as desired. Slice and serve.