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Preheat the oven to 350. Spray an 8-inch cake pan with cooking spray and set aside.
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Whisk the flour, sugar, baking soda, and salt together in a medium bowl. Make a well (a deep indentation) in the middle of the dry mixture and pour the water, oil, vanilla, and vinegar into the well.
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Stir with a rubber spatula until batter until the batter is smooth; don’t over-mix, you can stop stirring once you don’t see big streaks or lumps of flour in the batter.
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Pour the batter into the prepared pan and smooth the top.
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Bake 34 to 40 minutes, until the cake is golden around the edges and a cake tester inserted into the center of the cake comes out clean.
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Cool on a wire rack, then dust with powdered sugar and serve. (You can also dust the cake while it’s warm and the sugar will sort of melt into it.)
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Uneaten cake can be stored at room temperature, covered, for 3 days. You can also freeze slices, tightly wrapped, for about a month.