01 - Preheat oven to 350°F. Grease two 8-inch round cake pans and line with parchment paper.
02 - Whisk together gluten-free flour blend, baking powder, baking soda, and salt in a medium bowl.
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, avoiding overmixing.
06 - Gently fold rainbow sprinkles into batter using a spatula.
07 - Divide batter evenly between prepared pans. Bake for 28-32 minutes until a toothpick inserted in center comes out clean.
08 - Let cakes cool in pans for 10 minutes, then transfer to wire rack to cool completely.
09 - Beat softened butter until creamy. Gradually add powdered sugar, beating until smooth. Mix in vanilla, salt, and 2 tablespoons milk. Adjust consistency with additional milk if needed.
10 - Place one cake layer on serving plate. Spread frosting layer on top. Position second layer and frost top and sides evenly.
11 - Decorate with additional sprinkles as desired. Slice and serve immediately.