Directions for cake
Preheat oven to 350° F and line cupcake pan with cupcake liners.
In bowl of stand mixer add the flour, sugar, baking powder and salt and stir together using paddle attachment for about a minute. Enough to get them nice and combined.
With mixer on low, drop in butter, a few cubes at a time continuing until all butter is in and mixer resembles coarse sand.
In a small bowl mix milk, egg and vanilla.
With mixer still on low slowly pour in milk, egg and vanilla. Turn mixer to medium and beat for 2 minutes until batter is smooth, scraping sides of bowl as needed.
Divide batter into three equal parts; add one portion with red and other with blue icing color. Leave the third one colorless. Mix well so that colors gets combined well.
Fill liners ⅔ full, with heaping 1 tablespoon red color first and then white color and finally add blue color batter and bake for 22 minutes until centers are set and toothpick comes out clean.
Allow to cool completely before frosting.
Directions for Vanilla butter cream frosting
In large bowl, cream shortening and butter with electric mixer. Add vanilla. Gradually add sugar, one cup at a time, beating well on medium speed. Scrape sides and bottom of bowl often. When all sugar has been mixed in, icing will appear dry. Add milk and beat at medium speed until light and fluffy. Keep bowl covered with a damp cloth until ready to use.
For best results, keep icing bowl in refrigerator when not in use. Refrigerated in an airtight container, this icing can be stored 2 weeks. Rewhip before using