To make the buttercream, beat the softened butter in a stand mixer fitted with a paddle attachment on medium speed until smooth. Reduce the speed to low and gradually add in 7 cups of powdered sugar. Once incorporated, raise the speed to medium-low and continue mixing until well blended. Lower the speed again and add the cream or milk along with the vanilla extract. Mix until combined. Increase the mixer speed to medium and beat until the frosting is smooth and creamy. If a firmer texture is desired, add the remaining 1/2 to 1 cup of powdered sugar and beat again on medium speed until light and fluffy.
Begin the assembly by organizing your wrapped cake layers in rainbow order, deciding which two will be the center layers with the surprise filling. For instance, use purple and blue for the bottom, green and yellow for the center (with cavities for filling), and orange and red for the top. To start building the base, spread a small amount of frosting in the center of a cake board or serving plate to keep the cake from sliding. Line the edges of the board with four strips of parchment paper to protect it during frosting. Unwrap the purple cake layer, remove the parchment, and level it with a serrated knife if needed. Center it on the plate and top with 3/4 cup of frosting, spreading it evenly. Next, unwrap the blue layer, level it, remove the parchment, and place it on top of the purple layer. Align the layers and frost with another 3/4 cup of buttercream.
Now prepare the filled layers. Unwrap the green layer, keeping the parchment attached, and level it. Use a 3-inch round cutter to remove the center of the layer. Carefully invert the green layer over the blue one, using the parchment to help guide it into position, then remove the parchment. Frost the green ring with 1/2 cup of buttercream, avoiding the center hole. Repeat the same process with the yellow layer—cut out the center, invert and align it over the green layer, remove the parchment, and frost both the top and inside of the hole with a thin layer of buttercream. Fill the cavity created by the green and yellow layers with a generous amount of sprinkles or candy-coated chocolates. Pack the sprinkles gently but firmly into the bottom and sides of the hole to ensure the center is filled.
Continue stacking by unwrapping the orange layer, leveling it if necessary, and placing it carefully on top of the yellow layer. Spread 3/4 cup of buttercream on top, smoothing it evenly. Finally, unwrap and level the red layer, invert it on top of the orange layer, and align it neatly. For the crumb coat, use about half of the remaining buttercream to apply a thin layer over the top and sides of the cake. It’s normal if crumbs appear during this step—this layer will be covered later. Chill the crumb-coated cake in the refrigerator for at least 1 hour. Keep the rest of the buttercream covered at room temperature.
Once the cake has chilled, frost it with the remaining buttercream, smoothing the top and sides for a clean finish. Add decorative sprinkles, edible glitter, or any desired toppings to complete the look. Before slicing, chill the finished cake for at least 1 more hour—or overnight, if preferred—to allow it to set completely. When ready to serve, use a long, sharp knife to slice through the cake. Be prepared for some resistance as the knife cuts through the sprinkle-filled center. The vibrant interior and surprise candy filling will create a stunning reveal that’s sure to impress your guests.