Preheat the oven to 180℃. Line a 20 cm baking tin with baking paper.
In a large mixing bowl add the caster sugar and the softened butter. Use a whisk to beat it until it is well combined and starts to turn creamy.
Add the eggs, flour and vanilla extract and beat until well combined.
Add the milk, and beat it in. You should now have a smooth cake batter.
Pour it into your lined baking tin and smooth it out into the edges.
Place it into the oven for 18-20 minutes. It should be springy to touch. If you poke a skewer into the middle it should come out clean.
Leave the cake to cool in the tin for ten minutes before turning out onto a cooling rack. Turn it upside down to ensure a flat top.
Once it has cooled completely, make the icing. In a large mixing bowl add the icing sugar, then add the milk and vanilla extract. Use a whisk to beat it together until it is completely smooth.
Pour it over the cake and spread it evenly.
Sprinkle over the multi coloured sprinkles. Leave the icing to set.
Once set, cut it into portions and serve.