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Step 1
Preheat the oven to 325°F. For a traditional chiffon cake, use an ungreased 10" tube pan. If you want to make a layer cake line two 8” cake pans with parchment paper or butter and flour the bottom of the pans only.
Step 2
Combine the oil, egg yolks, water and vanilla in a mixer bowl. Mix on medium speed until well combined.
Step 3
Sift the flour with 1 cup of the sugar, the baking powder and salt. With the mixer on low, add the dry ingredients to yolk mixture. Whip on high speed for 1 minute, then set aside
Step 4
Whip the egg whites on medium speed to soft peak. Gradually add the remaining ½ cup sugar, increase the speed to medium high and whip to full peak. Fold the whites into the yolk mixture in three increments.
Step 5
If making a layer cake, divide the batter between the two pans. If you're using a tube pan, pour all the batter into the pan. Bake until the middle of the cake springs back with lightly pressed, 30-35 minutes for the layers or about 50-60 minutes for the tube pan.
Step 6
Cool the cake completely in the pan.