Bake the Cake Layers
Preheat oven to 350°F (180°C). Grease and flour the three cake pans.
In a medium bowl, whisk together flour, baking powder, baking soda, and salt.
In a large bowl, beat butter and sugar until light and fluffy. Add eggs one at a time, then mix in vanilla.
Alternate adding the dry ingredients and milk into the wet mixture, starting and ending with the dry.
Divide the batter evenly into 3 bowls:
One stays plain (white layer)
One gets red food coloring
One gets blue food coloring
Pour into prepared pans and smooth tops. Bake 25–30 minutes or until a toothpick comes out clean.
Cool completely on wire racks. Level the tops with a serrated knife if needed.
Make the Buttercream
Beat butter and shortening until smooth. Gradually add powdered sugar.
Add vanilla and milk, beating until creamy and spreadable.
Tint 1 cup frosting red, and 1 cup blue. The rest stays white. Use violet + white color if needed to brighten it.
Assemble the Cake
Add a dab of frosting on your cake stand and place parchment strips to keep it clean.
Place the blue cake layer first. Spread white frosting on top.
Add the white layer. Frost again.
Finish with the red cake layer on top.
Apply a thin crumb coat around the cake. Chill for 30 minutes.
Add final smooth layer of frosting.
Decorate
Press sprinkles around the sides or base.
Use red and blue frosting to pipe swirls on top. Insert mini American flags or sugar stars if desired.