For my daughter's rainbow birthday party I made small cupcakes for the kids and a jumbo rainbow cupcake to sing the happy birthday and served that to the adults. The cake was beautiful to decorate the table of treats but specially colorful when cut open! It is said that people eat with their eyes... I don't know, but for the first time we had no leftover from the kids' birthday cake!
I used a white cake mix (because I had made from scratch a lot of other treats) but you can use any white cake recipe. Do not use whole wheat flower or yellow cake mix, because the colors are never going to be right. Divide the cake dough in six equal parts and color using food or frosting coloring to make purple (blue +red), blue, green (blue + yellow), yellow, orange (yellow + red) and red. Layer on a jumbo cake pan (I bought it at Walmart) starting from purple and going up to red. Follow the usual instructions of your recipe for baking. You will do the same with the frosting to top after cooked. Take a look at my post on the small cupcakes with rainbow frosting. (I colored extra frosting when baking those to cover this cake). Start applying the frosting from the top (inside) and move outwards. I am not a super baker, so I didn't achieve the perfection I would like but to be honest it didn't matter! The colors do the trick for an attractive cake anyway! I recommend placing cake on a white cake stand or decorating with white marshmallows around the cake if you do not have a white stand or serving plate. (the contrast is better and if using the marshmallows they will look like clouds!). This same technique can be used for smaller cupcakes. Enjoy!
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