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1. Preheat oven to 350 degree F. Grease and lightly flour a 9x1-1/2-inch round or 8x8x2-inch baking pan.
2. In a large mixing bowl combine flour, sugar, cocoa powder, baking soda, baking powder, and salt. Add milk, oil, and vanilla. Beat with an electric mixer on low speed just until combined. Beat on medium speed for 2 minutes. Add egg and beat 2 minutes more. Pour batter into prepared pan.
3. Bake for 30 to 35 minutes or until a wooden toothpick comes out clean. Cool cake on a wire rack for 10 minutes. Remove cake from pan. Cool thoroughly on a wire rack. To serve, sprinkle with powdered sugar and transfer to a serving plate. Makes 8 servings.