Preheat oven to 350°F (180°C). Grease and flour six small cake pans, one for each color.
In a large bowl, whisk together the flour and baking powder.
In another bowl, cream together the butter and sugar until light and fluffy, then add the eggs one at a time.
Stir in the vanilla extract and milk, then gradually mix in the dry ingredients until a smooth batter forms.
Divide the batter into six equal portions and stir in the food coloring to each portion (red, orange, yellow, green, blue, purple).
Pour the colored batters into the prepared pans and bake for 12-15 minutes. Let cool completely.
For the frosting, whip the heavy cream and powdered sugar until stiff peaks form.
Layer the cake layers, starting with purple at the bottom, and spread a layer of whipped cream between each layer.
Cover the top and sides of the cake with the remaining cream, then smooth it evenly.
Cover the cake with white fondant, so the colors appear as a surprise in the slices.
Decorate the top of the cake with a rainbow motif or edible sugar pearls to enhance its visual appeal.
Refrigerate the cake for at least an hour to allow the flavors to meld, then slice and serve.
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