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Preheat oven to 350°F (177°C). Line an 8 x 8 inch baking pan with parchment paper.
In a large mixing bowl, add flour and sugar. Whisk until evenly combined. Then sift your mixture by running your whisk rapidly back and forth through the flour until it looks light and powdery.
Add in vanilla, oil and half of the water. Do not add the entire amount of water, otherwise you won't be able to mix your batter. Whisk until your batter is smooth and no flour lumps remain. Once batter is smooth, add in remaining water and whisk again until batter is smooth.
Pour batter into prepared baking pan. Bake for about 35 minutes or until toothpick inserted comes out clean. Let cake cool completely in pan before removing and cutting. If adding frosting, add it after the cake has cooled.