Preheat the oven to 350°F (175°C). Grease and flour a dreidel-shaped cake pan or a rectangular cake pan if shaping manually.

In a large bowl, cream together the butter and sugar until light and fluffy. Add eggs one at a time, beating well after each addition.

In a separate bowl, whisk together flour, baking powder, and salt. Gradually add the dry ingredients to the butter mixture, alternating with milk. Stir in vanilla extract.

Divide the batter into two portions. Color one portion blue and leave the other white. Layer or marble the batters in the prepared pan.

Bake for 40-45 minutes, or until a toothpick inserted into the center comes out clean. Let the cake cool in the pan for 10 minutes, then transfer to a wire rack to cool completely.

For the glaze, whisk together powdered sugar, milk, and vanilla extract until smooth. Drizzle over the cooled cake and decorate with sprinkles and edible glitter.

If using a rectangular pan, once cooled, cut the cake into a dreidel shape using a template. Decorate as desired.