Cake: Preheat oven to 350°F. Line the bottoms of three 8-inch round cake pans with parchment paper then spray the insides of all pans with baking spray. Set aside.
In a medium bowl use a whisk to sift together flour, sugar, baking powder, baking soda and salt. Set aside.
In a separate large bowl use an electric mixer to beat the milk, sour cream, melted butter, vegetable oil, eggs, vanilla and almond extracts on medium speed until well blended.
Lower the speed of the mixer and gradually add the sifted dry ingredients to the wet ingredients just until mixed (just until you no longer see white streaks of flour). Do not overmix.
Fold the sprinkles into the batter by hand. Evenly divide the cake batter between the 3 prepared cake pans.
Place into the oven and bake for 33-35 minutes or until a toothpick inserted into middle comes back clean. Let cake layers cool in the pans for 15 minutes then remove to wire cooling racks to cool completely.
Once cooled, level the layers using a large serrated knife to trim the tops off the cake rounds, if needed. (Skip this step if not needed.)
Line a baking sheet with parchment paper and place the cakes onto the baking sheet. Pop into the freezer for 15 minutes while you make the frosting. (Pro Tip: Freezing the cakes a bit before frosting helps prevent the cake from crumbling once frosting is added.)
Vanilla Buttercream Frosting: In a large bowl use an electric mixer fitted with the paddle attachment to beat the powdered sugar, butter and vanilla extract on high speed for about 5 minutes or until light and fluffy (The frosting should be firm enough to hold its shape while piping with an icing tip but soft enough that it can be frosted onto the cake smoothly.)
Remove ½ cup of the frosting to a separate bowl and set aside to make the clouds. Add a few drops of light blue gel to the remaining frosting. Beat to blend, adding more until your desired color is reached. It should be sky blue.
Cake: Remove cakes from freezer. Place a thin layer of frosting (about 1 tablespoon) in the middle of a cake board or cake plate then center one cake layer cut side up on the frosting.
Add a generous layer of light blue frosting to the top of that first cake layer then place the second cake layer on top, repeat with third layer.
Frost a thin layer of light blue frosting around the top and sides of cake. This first thin layer of frosting (called a crumb coat) is meant to secure all the crumbs to the cake. This helps to prevent crumbs from getting into the final layer of the cake. You can use a cake scraper or the edge of a large frosting spatula to smooth.
Freeze for 10 minutes. Remove cake from freezer and apply the second layer of light blue frosting all around the top and sides of the cake.
Decorate Cake: Use the Skittles to create a rainbow over the top half of the cake. Gently press into the frosting. (You can add a bit of additional frosting to the top of the cake to secure, if needed.)
The purple Skittles will be closest to the middle then you work out from there with blue next, then green, then yellow, then orange and finishing with red. Decorate along the bottom edge of the cake alternating colors.
Using a piping bag fitted with a jumbo round tip or a large plastic storage bag with the corner snipped off to pipe fluffy white clouds at both ends of the rainbow.
The cake can remain at room temperature (in a sealed food safe container) for up to 2 days or chilled in the fridge for up to 5 days.
Freeze the leftovers (wrapped tightly in food-safe plastic wrap then placed into a sealed food safe container) for up to 3 months. Bring the cake back to room temperature before serving.