Sift together maida (flour) and baking powder into a bowl.
In a separate bowl, whisk castor sugar and butter together.
Gradually add the flour mixture, followed by half a cup of milk and whisk until smooth. Add vanilla essence and vinegar, and mix well.
Pour the batter into a cake tin and bake at 180 degrees Celsius for 20 minutes.
Let the cake cool, slice it, and serve.
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