In a medium bowl, whisk together the flour, baking powder, baking soda and salt. In a separate bowl, combine warm milk and white vinegar.
Add in the granulated sugar, lemon zest, canola oil and vanilla to the liquid ingredients and mix.
Sift the dry ingredients gradually, into the milk, until fully mixed together.
Pour 1 cup of the batter into small bowl and stir in red food coloring until desired color is achieved.
Pour a second cup of the batter into separate bowl and stir in blue food coloring until desired color is achieved First, pour blue batter into the
bottom of the Bundt pan. Next, slowly pour white batter over red batter.
Lastly, pour red batter on top of white batter to make a ring of red batter in the center of the white layer.
Bake for 35-40 minutes or until a toothpick inserted into the center of the cake comes out clean (a few crumbs are okay but no wet batter).
Allow to cool on a cake rack until completely cooled, about 30 minutes.
Turn cake pan upside down and gently remove cake from pan onto cooling rack or serving platter.
For Icing: In a bowl mix powdered sugar and milk, whisk until it is smooth without any lumps of powdered sugar.
Divide icing between three bowls, stir red food coloring into one, and blue food coloring into the second. The third will remain white. Drizzle frosting over cake and top with sprinkles if desired.
Serve immediately or store at room temperature, covered, up to 24 hours.