With the rack in the middle position, preheat the oven to 180 °C (350 °F). Line two 20-cm (8-inch) square cake pans with parchment paper. Butter both sides of the paper.
In a bowl, combine the flour and baking powder. In another bowl, with an electric mixer, cream the butter, sugar and vanilla until light and fluffy. Add the eggs, one at a time, beating constantly. Add the dry ingredients alternately with the milk. Combine with the electric mixer. Spread into the pans.
Bake for about 20 minutes or until a toothpick inserted in the centre of the cake comes out clean. Unmould and let cool on wire rack.
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