Preheat oven to 350°F (175°C). Grease and flour a 9-inch round cake pan.
In a medium bowl, stir together the flour, baking powder and salt.
In a large bowl, cream together the sugar and butter until light and fluffy. Beat in the eggs one at a time, then stir in the vanilla. Beat in the flour mixture alternately with the milk.
Stir in chocolate chips. Spread batter into prepared pan.
Bake for 25 to 30 minutes in the preheated oven, or until a toothpick inserted into the center of the cake comes out clean.