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Sift together all the dry ingredients (flour, baking powder, and salt) and mix well to distribute the baking powder evenly.
Cream the butter for a few seconds until smooth. Add powdered sugar and cream together until fluffy for about a minute.
Add the eggs one at a time, mixing each egg well before adding another. Do not use cold eggs.
Add vanilla essence. Add the sifted dry ingredients in three small batches alternating with the milk, ending with the dry ingredients. Do not use cold milk. Fold gently until no visible flour remains.
Transfer the 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 center comes out clean.
Allow the cake to cool in the pan for 15 minutes before removing to a wire rack to cool completely. The cake tastes best after resting at room temperature the next day.