Preheat oven at 350F and grease or line the cake pan with parchment paper.
In a bowl, sieve and mix flour, baking powder and baking soda.
Take another bowl and whisk oil, yoghurt/dahi, vanilla essense and sugar into a smooth mixture without any lumps.
Now, add the wet ingredients to the dry ingredients and fold well. Do not mix a lot , it is ok if it is not a smooth batter or have a few lumps.
Add the cake batter to a lined or greased cake pan.
Bake for 30-40 minutes depending on your oven, or bake until a toothpick come out clean from the centre of the cake.
Let the cake cool, cut into slices and enjoy with tea or ice cream.