Preheat the oven to 350°F (180°C). Grease and flour two cake pans.
In a large bowl, whisk together the flour, baking powder, and salt.
In another bowl, cream together the butter and sugar until light and fluffy. Add the eggs one at a time, mixing well after each addition.
Gradually add the dry ingredients to the wet ingredients, alternating with the milk. Mix until just combined.
Pour the batter into the prepared pans and bake for 25-30 minutes, or until a toothpick inserted into the center comes out clean. Let the cake layers cool completely.
For the frosting, beat together the cream cheese, powdered sugar, and vanilla extract until smooth. Gently fold in the whipped heavy cream.
Layer the cake layers with the frosting. Frost the top and sides of the cake evenly.
Generously sprinkle the top and sides of the cake with rainbow sprinkles, ensuring they are evenly distributed.
Refrigerate the cake for at least one hour to allow the frosting to set, then serve.
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