01 - Preheat the oven to 350°F (175°C). Grease and flour two 8-inch round cake pans, or line them with parchment paper rounds.
02 - In a medium bowl, whisk together the all-purpose flour, baking powder, and salt. Set aside.
03 - In a large mixing bowl, beat the softened butter and granulated sugar together using an electric mixer until the mixture is pale, light, and fluffy.
04 - Add the eggs one at a time, beating well after each addition until fully incorporated. Stir in the vanilla extract and cotton candy flavoring.
05 - Gradually add the flour mixture to the batter, alternating with the whole milk. Begin and end with the dry ingredients, mixing until just combined. Avoid overmixing.
06 - Divide the batter evenly between two separate bowls. Add pink gel food coloring to one bowl and blue gel food coloring to the other. Gently fold each until the color is uniform throughout.
07 - Pour the pink batter into one prepared pan and the blue batter into the other. Smooth the tops and bake for 28–32 minutes, or until a toothpick inserted into the center of each cake comes out clean.
08 - Let the cakes cool in their pans for 10 minutes, then turn them out onto wire racks to cool completely before frosting.
09 - Beat the softened butter with an electric mixer until smooth and creamy. Gradually add the sifted powdered sugar in batches, beating well after each addition. Pour in the cotton candy flavoring and add whole milk or heavy cream, one tablespoon at a time, until the buttercream reaches a silky, spreadable consistency.
10 - Divide the buttercream evenly into two bowls. Tint one portion pink and the other blue using gel food coloring, mixing each until the color is smooth and even.
11 - Level the cake layers with a serrated knife if necessary. Place one layer on a serving plate and spread one color of buttercream evenly across the top. Place the second layer on top. Frost the entire cake with alternating swirls of pink and blue buttercream using an offset spatula.
12 - Garnish the frosted cake with fresh cotton candy and sprinkles just before serving to prevent the cotton candy from melting or dissolving.