Prep the pans. Heat the oven to 350°F (175°C).
Grease and line two 8-inch round cake pans with parchment. Lightly flour the sides to prevent sticking.
Whisk dry ingredients. In a bowl, whisk 2 1/4 cups all-purpose flour, 1/4 cup cornstarch, 2 teaspoons baking powder, 1/2 teaspoon baking soda, and 1/2 teaspoon salt. Set aside.
Cream butter and sugar. In a large bowl, beat 1/2 cup unsalted butter (soft) with 1 1/2 cups granulated sugar until pale and fluffy, about 2–3 minutes.
Scrape the bowl.
Add oil and eggs. Beat in 1/3 cup neutral oil. Add 3 large eggs one at a time, mixing well after each. Stir in 2 teaspoons vanilla extract.
Alternate dries and buttermilk. Add the dry mixture in three parts, alternating with 1 cup buttermilk in two parts.
Start and end with the dry ingredients. Mix on low just until combined. Do not overmix.
Fold in sprinkles. Gently fold in 1/2 cup rainbow sprinkles using a spatula.
Use “jimmies”; avoid nonpareils because they bleed more.
Fill and bake. Divide the batter evenly between pans and smooth the tops. Bake 22–28 minutes, until the centers spring back and a toothpick comes out clean or with a few moist crumbs.
Cool completely. Let the cakes cool in the pans for 10 minutes, then turn out onto racks. Peel off parchment and cool fully before frosting.
Make the frosting. Beat 1 cup (2 sticks) very soft unsalted butter until creamy.
Add 3 1/2 to 4 cups powdered sugar gradually, mixing on low. Add 2–3 tablespoons heavy cream, 2 teaspoons vanilla, and a pinch of salt. Whip on medium-high for 1–2 minutes until fluffy.
Adjust cream or sugar for spreadable consistency.
Assemble. Level cake layers if domed. Place one layer on a stand. Spread about 3/4 cup frosting over the first layer.
Add the second layer.
Crumb coat. Spread a thin layer of frosting over the whole cake to seal in crumbs. Chill 15–20 minutes.
Finish and decorate. Apply a thicker coat of frosting and smooth it. Press extra sprinkles around the bottom edge or shower them over the top.
Add candles!