This achievement can be got in the tutorial world.

First you will need to get 3 buckets this can be got by going to the 3 iron blocks that can be found near the pumpkins. Get the iron and make 3 buckets. Then head to the farm and with the bucket equipped press LT on the cows to milk them. Right next to the cows are chickens wait for them to lay the eggs once they have collect them. Across from the animal pens is a farm, take 3 wheat from there. You'll need to find sugarcane. I found mine near the water behind the sand buildings in the town. Craft the sugarcane into sugar and your good to go. Now go to a crafting table and make your cake.