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1. Allow butter and eggs to stand at room temperature for 30 minutes. Meanwhile, grease two 9x2-inch round cake pans. Line bottoms with parchment; grease paper. Flour pans, tapping to remove excess; set aside. In medium bowl stir together 3-1/3 cups flour, baking powder, and salt; set aside.
2. Preheat oven to 350 degrees F. In an extra-large mixing bowl beat butter with mixer on medium to high for 30 seconds. Gradually add sugar, about 1/4 cup at a time, beating on medium until well combined. Scrape sides of bowl; beat 2 minutes more. Add 1/8 tsp. red food coloring; beat to combine. Add eggs one at a time, beating well after each addition.
3. In bowl stir together milk, lemonade concentrate, and extract (mixture will look curdled). Alternately add flour mixture and milk mixture to butter mixture, beating on low after each addition just until combined. Remove half (4 cups) the batter; spread in one pan. In remaining batter, stir 1/4 tsp. red food coloring. Spread in second pan.
4. Bake about 35 minutes, until tops spring back when lightly touched. Meanwhile, prepare Lemonade Butter Frosting.
5. Cool in pans on wire racks for 10 minutes. Remove layers from pans; peel off waxed paper. Cool completely on wire racks. Trim off domed tops of layers so cake will stand flat. Cut each layer horizontally in half, making four layers. Brush crumbs from layers.
6. Place one dark pink layer, cut-side down, on a plate. Spread 1 cup frosting just to edges. Top with a light pink layer, followed by second dark pink layer, spreading frosting on each just to edges. Stack final light pink layer, cut-side down. Spread frosting on top and sides as desired.
1. In very large mixing bowl beat softened butter with mixer on medium for 30 seconds, until light and fluffy. Add marshmallow creme and lemonade concentrate. Beat until smooth, scraping sides of bowl. Add powdered sugar and extract; beat until light and fluffy. (If frosting is stiff, soften in microwave no more than 10 seconds, then beat until smooth.)
2. Frost Pink Lemonade Cake. To store frosting, cover and refrigerate up to 3 days or freeze up to 1 month. Bring to room temperature before frosting cake. Makes 6 cups.