Preheat oven to 350°F (175°C). Grease and flour two 9-inch round cake pans.

In a large bowl, cream together the butter and sugar until light and fluffy. Beat in the eggs one at a time, then stir in the vanilla.

In a separate bowl, whisk together the flour and baking powder. Gradually add the dry ingredients to the wet ingredients, alternating with the milk, beginning and ending with the dry ingredients. Beat until just combined.

Pour batter into the prepared pans and bake for 30-35 minutes, or until a wooden skewer inserted into the center comes out clean.

Let cool in the pans for 10 minutes before inverting onto a wire rack to cool completely.

In a large bowl, beat together the butter and powdered sugar until light and fluffy. Gradually add the milk and vanilla extract, beating until smooth.

Frost the cooled cake layers and decorate as desired. Consider using graduation-themed decorations like edible diplomas or caps.