In a bowl, mix together the dry ingredients - flour, baking powder and salt.
In another bowl, mix together the butter and sugar until the sugar is dissolved.
In a separate bowl, mix the yogurt very well so there are no lumps.
Add the milk to the beaten yogurt and mix well.
Also add vanilla essence to the yogurt milk mixture, mix well to combine.
Combine the yogurt milk mixture to the butter sugar mixture and mix everything well.
Transfer the wet ingredients mixture to the dry ingredients mixture and mix everything until well combined to for the batter.
Transfer the batter to a prepared greased pan and bake in the heated oven for about 45 minutes or until a toothpick inserted at the center comes out clean.
The completed cake will be slightly golden brown on top and sides. Allow the cake to cool down before you slice and serve. Enjoy with tea or coffee or with a cup of cold milk as you like!