Pre-heat oven to 175°C. Grease an 8x8-inch cake pan.

In a large bowl combine the flour, sugar, and baking powder and gently mix.

Add to this bowl the milk, egg whites and vanilla and mix until combined.

Add the butter and oil and continue mixing until a smooth batter forms.

Pour the batter into the cake pan and bake for about 20 minutes until a toothpick inserted comes out clean.

Let cake cool completely in the pan. Run the edge of a thin knife or an offset spatula along each side. Invert then remove from the pan and let sit for about 1 hour.

Make the frosting: using a mixed beat together the cream cheese and butter until smooth.
Add the sugar slowly and beat until smooth.

Finish the frosting off with the vanilla and adjust the consistency with milk / cream or more powered sugar.

Assemble the cake: Divide the cake into two layers.