Preheat your oven to 350°F (175°C). Grease the bottom and sides of the two round cake pans and line them with parchment paper for easy removal.
In a large mixing bowl, combine the softened butter and granulated sugar. Mix with an electric mixer until light and fluffy, about 3-4 minutes.
Add the eggs one at a time, mixing well after each addition. Then add the vanilla extract and mix until combined.
In a separate bowl, whisk together the flour, baking powder, and salt.
Gradually add the dry ingredients to the butter mixture, alternating with the milk. Start and finish with the flour mixture. Mix until just combined.
Divide the batter evenly between the two prepared cake pans. Smooth the tops with a spatula.
Bake in the preheated oven for 25-30 minutes, or until a toothpick inserted in the center comes out clean. Remove from the oven and let the cakes cool in the pans for 10 minutes. Then, turn them out onto a cooling rack to cool completely.
Once the cakes are cool, place one layer on a serving plate. Spread a layer of vanilla frosting on top.
Place the second layer on top of the frosted first layer. Use the remaining frosting to cover the top and sides of the entire cake. Smooth it out with an offset spatula.
Sprinkle the green dyed coconut on top and around the sides of the cake to resemble grass.
Decorate the top of the cake with Peeps marshmallows, sticking them in at varying heights using toothpicks or skewers for stability. Add edible flowers if using.
Slice and serve your Peeps Easter Garden Cake!