Preheat oven to 350°F. Grease and line an 8x8 or 9x9 pan.
In a bowl, beat butter, granulated sugar, and brown sugar until light and fluffy (2–3 minutes).
Mix in eggs one at a time, then add sour cream, milk, and vanilla. Mix until smooth.
In a separate bowl, whisk flour, baking powder, baking soda, and salt.
Add to the wet ingredients and mix until just combined.
Stir in chocolate chips.
Pour batter into pan and smooth the top. Bake for 30–35 minutes, until a toothpick comes out clean.
Let cake cool completely before frosting.