Preheat your oven to 350°F (180°C). Grease and line a 9-inch (22 cm) cake pan with parchment paper.
In a large bowl, whisk together the flour and baking powder.
In another bowl, cream together the butter and sugar until light and fluffy. Beat in the eggs one at a time.
Stir in the rum extract and milk. Gradually fold in the dry ingredients until just combined.
Pour the batter into the prepared pan and bake for 30-35 minutes, or until a wooden skewer inserted into the center comes out clean.
Let the cake cool completely in the pan before slicing it horizontally into two layers.
In a small bowl, combine the powdered sugar, punch flavoring, and a little water to create a smooth, creamy punch glaze.
Fill the cake with whipped cream and frost the top with the punch glaze.
Garnish the top of the cake with colorful sprinkles or whipped cream rosettes.
Refrigerate for at least 1 hour before serving to allow the glaze to set.
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