Preheat the oven to 170°C and line two 12-hole cupcake trays with cases.
Beat the flour, sugar, baking powder, salt, and butter together, then mix in half the milk.
Whisk the eggs, vanilla, and remaining milk in a separate bowl and combine with the flour mixture until smooth.
Divide the batter into four bowls and mix a different food coloring into each bowl.
Layer the colored batters evenly into the cupcake cases without mixing them together.
Bake for 20 to 25 minutes until the sponge is firm and a skewer comes out clean.
Cool the cupcakes in the tray briefly before moving them to a wire rack to cool completely.
Beat the butter until soft, then sift in icing sugar and vanilla to create a fluffy frosting.
Pipe the frosting onto cold cupcakes and decorate with sprinkles and a glacé cherry.