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Step 1
Preheat oven to 350°F (177°C). Line an 8 x 8 inch baking pan with parchment paper.
Step 2
In a large mixing bowl, add flour, baking powder, salt and sugar. Whisk until evenly combined. Then do a quick sift of your mixture by running your whisk rapidly back and forth through the flour until it looks light and powdery. This is an important step because it makes it much easier to mix your batter and not overwork it.
Step 3
Add in vanilla, oil and half of the water. Do not add the entire amount of water, otherwise you won't be able to mix out the flour lumps. Whisk until your batter is smooth and no flour lumps remain. Your batter will be very thick. Once batter is smooth, add in remaining water and whisk again until batter is smooth.
Step 4
Pour batter into prepared baking pan. Bake for about 38 minutes or until cake is very lightly browned on top and toothpick inserted comes out clean. (I found it's better to bake this cake a little longer than just the toothpick coming out clean in order have a better flavor. The cake is done for me at 35 minutes using the toothpick test but I bake a little longer until the top is just starting to brown. Let the cake cool completely in pan before removing and cutting. If adding frosting, add it after the cake has cooled.