Preheat your oven to 350°F (175°C) and line a small round cake pan, preferably a 4-inch one.

In a mixing bowl, cream the butter and sugar together until light and fluffy, which should take about three minutes.

Gradually add the egg (or applesauce) and vanilla extract, mixing thoroughly until well combined.

In another bowl, whisk the flour, baking powder, and salt together.

Gradually add the dry ingredients to the wet mixture, alternating with the milk until everything is smoothly combined.

Pour the batter into the prepared pan, smoothing the top.

Bake for 22-25 minutes, checking with a toothpick to ensure it comes out with a few moist crumbs.

Let the cake cool in the pan for about 10 minutes before transferring it to a wire rack.

Once completely cooled, use a knife to slice the cake horizontally into 2-3 layers for stacking.

To prepare the frosting, beat your butter until creamy.

Gradually incorporate the powdered sugar, mixing in cream and vanilla until fluffy.

Reserve one-third of the frosting for the outer layer and color the remainder as desired for creative decorations.

Spread frosting between the layers and apply a crumb coat before chilling for about 15 minutes.

After chilling, apply a final layer of frosting and get creative!

Use piping bags to make intricate designs and consider personalizing your cake with colors, names, or themed decorations.

Edible markers, sprinkles, or small fruit pieces can enhance your decoration further.