Preheat the oven and prepare the baking pans as needed.

In a mixing bowl, cream together the softened butter and granulated sugar.

Add the eggs one at a time, mixing well after each addition.

Stir in the milk, vanilla extract, baking powder, flour, and blue food coloring until well combined.

Divide the batter evenly into prepared cake pans.

Bake in the preheated oven for 25 minutes or until a toothpick inserted in the center comes out clean.

Let the cakes cool completely before frosting.

For the frosting, cream together the softened butter, powdered sugar, milk, vanilla extract, and blue food coloring.

Frost the cooled cakes and decorate with edible pearls and coconut flakes.