Set the oven temperature to 350 degrees Fahrenheit. Prepare two 8-inch round pans by greasing and lining them.
Butter and sugar are creamed together until light. Then eggs are added one by one followed by vanilla.
Whisk together the flour, baking powder, and salt. Then, combine the batter and the dry mixture, as well as the milk, in alternating portions.
Divide the batter equally between the two pans. In the center of one pan, and leaving a 1-inch border, sprinkle 3/4 cup of the candy pearls, and then cover them with the rest of the batter.
Do this for the second cake. Bake for 25 to 30 minutes. Let the cakes cool in the pans for 10 minutes, and then cool on the racks.
Stack frost and keep the pearls in the center so they release when cut.