Blend cracker crumbs, flour and baking powder in small bowl; set aside. Beat butter and sugar in large bowl with electric mixer at high speed until light and fluffy. Add eggs, one at a time, beating well after each addition. Stir in vanilla. Alternately add flour mixture and milk, beating well after each addition. Divide batter into 2 well greased 8" round cake pans.
Bake at 350 degrees for 25 minutes or until done. Cool in pans 15 minutes. Remove from pan; cool completely. Fill and frost as desired.
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