Preheat your oven to 350°F (175°C).
Grease and flour three 8-inch round cake pans.
In a large bowl, cream the butter and sugar until light and fluffy.
Add eggs one at a time, mixing well after each addition.
Stir in vanilla extract and milk until combined.
In another bowl, whisk together the flour and baking powder.
Gradually add the dry ingredients to the wet mixture, mixing until smooth.
Divide the batter into three bowls and add food coloring to each.
Pour each color batter into the prepared pans.
Bake for 30-35 minutes or until a toothpick comes out clean. Let cool completely.