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Tip: By varying decorating techniques and colors, this recipe can be used to create gift cakes for birthdays and many other gift-giving occasions.
Preheat oven to 350°F. Spray pan with Bake Easy Spray or use Cake Release. In medium bowl, sift together flour and baking powder; set aside.
In large bowl, cream butter and sugar with electric mixer until light and fluffy; add vanilla and beat well. Add flour mixture to butter mixture alternately with milk; beat well after each addition.
In separate bowl, beat egg whites until stiff but not dry. Gently fold egg whites and peppermint sprinkles into batter. Pour into prepared pan.
Bake 45-50 minutes or until toothpick inserted in center of cake comes out clean. Cool 15 minutes in pan on rack; remove and cool completely before decorating.
To decorate: Place cooled cake on foil-wrapped cake board. Brush piping gel over bow area of cake. Carefully sprinkle colored sugar over piping gel. Arrange icing decorations as desired.