Preheat oven to 350 degrees. Prepare two 8in. pans.
In a medium bowl sift together flour, baking powder, baking soda, and salt. In a mixer, cream together sugar and butter. (I used chilled butter but room temperature would work as well) Add in extracts and eggs, one at a time. Add flour mixture to butter mixture alternating with milk. (a third of your flour, half of your milk, and repeat until both are gone)
While that is mixing place white chocolate chips in microwave and heat for one minute. Remove from microwave and stir, then return and heat in 30 second increments until melted.
Add melted white chocolate chips to batter and immediately pour into prepared cake pans.
Bake for 25-35 minutes depending on your stove. Start checking at 25 minutes.
Let cool.