Preheat the oven to 350°F (175°C). Grease and flour two 9-inch round cake pans.

In a mixing bowl, cream together the butter and sugar until light and fluffy.

Add the eggs one at a time, mixing well after each addition. Stir in the vanilla extract.

In another bowl, combine the flour, baking powder, and salt. Gradually add to the creamed mixture alternately with milk.

Divide the batter evenly between the prepared pans and smooth the tops.

Bake for 25-30 minutes or until a toothpick inserted in the center comes out clean. Let cool in pans for 10 minutes, then remove from pans to cool completely.

In a mixing bowl, beat the softened butter until creamy. Gradually add powdered sugar, mixing well.

Add vanilla extract and milk, mixing until smooth. Divide the frosting into two bowls.

Color one bowl of frosting blue and the other red using food coloring.

Once the cakes are completely cool, frost the top of one layer with blue frosting, then place the second layer on top.

Frost the entire cake with blue frosting, smoothing it out with a spatula.

Use red frosting to create Lilo's dress and fondant to create decorations for Stitch.

Sprinkle edible glitter on top for a fun finish.