Preheat the oven to 350°F. Grease your cake pans or cupcake pan with coconut oil or your preferred nonstick method.
Add the water and ½ cup of the sugar to a saucepan. Bring the mixture to a boil and boil for three minutes. Remove it from the heat and allow it to cool.
In the bowl of a stand mixer, blend the remaining ½ cup of sugar with the softened dairy-free butter and melted coconut oil.
With the mixer running, add the dairy-free milk and cooled sugar-water mixture.
Add the eggs, vanilla extract, salt, baking soda, baking powder, xanthan gum and gluten-free all-purpose flour. Omit the additional xanthan gum if your flour blend already contains it.
Beat the batter on medium speed for approximately five minutes, or until it has an almost pudding-like consistency.
Pour the batter evenly into the prepared pans.
Bake cupcakes for 16–20 minutes, 6-inch cake layers for 27–30 minutes or 8-inch cake layers for 30–35 minutes. Begin checking at the earliest listed time. The cake is done when a toothpick inserted into the center comes out clean.
Allow the cake to cool completely before frosting.