Preheat the oven to 350°F (175°C). Grease and flour the two 9-inch round cake pans or line the bottoms with parchment paper.
In a mixing bowl, combine the flour, baking powder, baking soda, and salt. Set aside.
In another bowl, beat the softened butter and granulated sugar together using an electric mixer until light and fluffy.
Add the eggs one at a time, mixing well after each addition. Then mix in the drained crushed pineapple and vanilla extract.
Gradually add the dry mixture to the wet mixture, stirring until just combined. Do not overmix.
Divide the batter evenly between the two prepared cake pans and smooth the tops with a spatula.
Bake in the preheated oven for 30 minutes, or until a toothpick inserted into the center of the cakes comes out clean.
Remove from the oven and let the cakes cool in the pans for 10 minutes before transferring them to a wire cooling rack to cool completely.
For the frosting, beat the softened cream cheese and powdered sugar together until smooth. Gradually add the milk until the frosting reaches your desired consistency.
Once the cakes are completely cooled, place one layer on a serving platter. Spread a layer of frosting on top, then place the second cake layer on top. Frost the top and sides of the cake.
Decorate the top with additional pineapple slices as desired.