Preheat oven to 165 degrees C. Grease and flour a 20cm ring tin. Sift together the flour and baking powder. Set aside.
In a saucepan heat milk and butter until butter is melted. Remove from heat and set aside.
In a large bowl cream together the sugar and eggs until light and lemon coloured. Stir in the vanilla. Beat in the flour mixture and the milk. Mix thoroughly and pour into prepared tin.
Bake in the preheated oven for 45 to 50 minutes or until a toothpick inserted into the centre of the cake comes out clean. Cool 10 minutes in the pan then turn out onto a wire rack and cool completely.