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Preheat the oven to 350°F and grease two 6-inch round cake pans.
In a large bowl, cream together the sugar and butter. Add the applesauce and vanilla, and mix well.
In a large bowl, combine the flour, baking soda, and salt. Mix well.
Add in the milk and vinegar. Mix well again.
Add the wet ingredients to the dry ingredients and use a hand mixer to combine them.
Soak two baking strips in water for a minute or two, then shake free of excess water and place around the cake pans. Place pans on a baking sheet, then divide the batter evenly between the two pans.
Spread batter evenly and bake for about 40 minutes or until a toothpick comes out clean.
Set the cakes aside to cool and make the frosting.
In a large bowl, use a hand mixer to cream together the butter, vanilla, and milk. Add the powdered sugar in a cup at a time and mix it thoroughly into the batter.
Hand mix the frosting after adding the last cup of powdered sugar.
Once the cakes are completely cool, remove the first one from the pan, set it on a cake board, and put a thick layer of frosting on the top.
Place the second cake on top of the first cake, then frost the entire cake. Use a frosting smoother for the best-looking frosting job.
Using your hand, press the sprinkles of your choosing up around the edge of the cake starting at the bottom.
Slice, serve, and enjoy!