Surprise Hanukkah Cake

Name: Surprise Hanukkah Cake
Cuisine: European
Ingredients: 1 cup all-purpose flour; 1 3/4 teaspoon baking powder; 1/4 teaspoon salt; 1/4 cup unsalted butter, room temperature; 1/2 cup granulated sugar; 1 teaspoon vanilla extract; 1 large egg; 1/2 cup milk; Blue food colouring; 2 cups all-purpose flour; 3 1/2 teaspoon baking powder; 1/2 teaspoon salt; 1/2 cup unsalted butter, room temperature; 1 cup granulated sugar; 1 teaspoon vanilla extract; 2 large eggs; 1 cup milk; 1/2 cup unsalted butter, room temperature; 1/2 teaspoon vanilla extract; 1 1/4 cups confectioner's sugar; Star of David sprinkles