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Sift together flour, baking powder and salt. Mix well to distribute the baking powder evenly.
Cream the butter until smooth. Add powdered sugar and cream together until fluffy for about a minute.
Add eggs one at a time, mixing well after each addition. Ensure eggs are at room temperature.
Add vanilla essence. Add the sifted dry ingredients in three small batches alternating with the milk, ending with the dry ingredients. Fold gently until no visible flour remains.
Transfer batter to a greased and lined 7 inch baking tin.
Bake in a preheated 180°C oven for 50-55 minutes or until a toothpick inserted in the centre comes out clean.
Allow to cool in the pan for 15 minutes before removing to a wire rack to cool completely. Best served after resting at room temperature overnight.