For the Cake:

1. Preheat oven to 350°F. Generously butter and flour two 8 or 9 inch cake pans and set aside.
2. In a large glass liquid measuring cup, whisk together the milk, egg whites, and cotton candy flavoring. Set aside.
3. In a large mixing bowl, whisk together the flour, sugar, baking powder, and sprinkles. Beat the flour mixture and butter on low speed until the mixture is crumbly, about 3 minutes.
4. With the mixer on low, beat in all but 1/2 cup of the milk mixture. Increase speed to medium and beat for about 3 minutes, until smooth. Scrape down sides of bowl as needed. Beat in remaining milk mixture until just mixed.
5. Give batter a final stir with rubber spatula, scraping bottom of the bowl to make sure all is fully combined. Pour evenly into prepared pans, smoothing the tops of the batter. Bake for about 20 minutes or until tops are brown and centers spring back when very lightly touched.
6. Remove from oven and let cool in pans for about 5 minutes before turning onto wire rack to cool completely.

For the Cotton Candy Simple Syrup:

1. In a small, heavy saucepan, whisk together cotton candy sugar and water over medium heat until mixture comes to a boil.
2. Boil for 3 minutes, stirring occasionally, until sugar is dissolved and mixture coats the back of a spoon.
3. Pour in a small cup or bowl and place in the refrigerator until cooled.

For the Frosting:

1. In the bowl of your mixer, beat butter, simple syrup and cotton candy flavoring on medium speed until smooth.
2. With the mixer on low, slowly add powdered sugar until just combined. Add heavy cream, then slowly increase mixer speed to high and beat for one minute until light and fluffy.
3. Assemble and frost cooled cake.
4. Garnish with candy, if desired.