Preheat oven to 425 degrees. Generously grease three 6-inch cake pans.
In the bowl and with a stand or hand mixer, cream butter and sugar for 2-3 minutes until whipped and fluffy. Beat in the eggs one at a time, ensuring each is fully incorporated before adding the next. Whip in the vanilla extract.
In a separate bowl, sift together flour, baking powder, and salt. In three batches, alternate mixing the milk and the flour mixture into the other wet ingredients until a thick, rich batter forms. Fold in the funfetti sprinkles.
Whisk cocoa powder into hot water. Add a heaping spoonful at a time of the cake batter and the chocolate into each cake pan (one spoonful cake batter per pan, then one spoonful of chocolate). Repeat until all components are used up. Swirl the batter to create ribbons of chocolate. It is okay if the cocoa seems to overwhelm the cake batter and look a little watery. The liquid will boil out and create some neat patterns!
Bake cakes for 40-50 minutes until centers set and an inserted toothpick comes out clean. Cool in the pans until room temperature to the touch, about 20 minutes, then run a knife around the edges and turn onto a wire rack. Cool completely, at least 20-30 minutes more. If the tops domed, carefully level with a serrated knife. Reserve the scraps.
When the cakes are ready to decorate, make the buttercream. Beat together butter, powdered sugar, vanilla, and bourbon until airy and spreadable. If needed, add 1 tbsp of milk at a time to thin the buttercream. It should be fluffy and easily smeared with a knife.
Decorate the cake! Set one layer onto a plate or cake stand. Frost the top only with 1/4ish inch thick layer of buttercream. Set a second layer atop and frost, then finish with the third layer. Frost cake with a thin layer of buttercream and set in the fridge for 15 minutes to create a "crumb layer." This makes decorating the rest much easier.
Use the remainder of the buttercream to cover the cake. Sprinkle with additional funfetti sprinkles. Store, covered tightly, at room temperature for up to 3 days, or refrigerated for up to a week.