Preheat oven to 350°F (175°C) and prepare three 8-inch round cake pans by greasing with butter and dusting with flour.

Sift together flour, sugar, baking powder, and salt in a mixing bowl. Stir until combined and make a well in the center.

Add softened butter, milk, vanilla extract, and cotton candy extract to the well. Beat on medium speed for 2-3 minutes until smooth and creamy.

Incorporate large eggs one at a time, mixing well after each addition. Mix for an additional 1-2 minutes until fluffy.

Divide batter evenly among the pans and bake for 25-30 minutes, or until a toothpick comes out clean.

Let cakes cool in pans for 10 minutes, then invert onto wire racks to cool completely.

Prepare frosting by beating softened butter until light and fluffy, gradually adding powdered sugar, then cream and extracts.

Divide frosting into two bowls and tint one pink and the other blue.

Assemble the cake by layering with pink and blue frosting between the layers and frosting the outer layer with alternating colors.

Decorate with fresh cotton candy and optional sprinkles just before serving.