Preheat your oven to 350°F (175°C). Grease and line 9x13 rectangular baking pan with parchment paper.
In a large bowl, beat the butter and sugar together until light, fluffy, and pale in color.
Mix in the eggs one at a time, beating well after each addition. Stir in the vanilla extract and vegetable oil
Gradually add the flour, salt and baking powder to the wet mixture, mixing just until combined. Do not overmix.
Spread half of the batter evenly into the prepared pan. Try to spread the batter as evenly as possible.
Slice the guava paste into thin (¼-1/3 inch thick) pieces. I like to place the guava paste in the freezer for a couple of minutes to help make it firmer and easier to slice.
Add a layer of guava paste slices on top. Do not overlap the guava slices, just make sure they're right next to each other to give that iconic guava layer this cake is known for.
Then spread the remaining batter over the guava layer. Make sure to spread the batter out as evenly as possible.
Bake for 45-50 minutes, or until the top is golden and a toothpick inserted into the cake (not the guava layer) comes out clean.
Let the cake cool in the pan for at least 45 minutes to an hour before slicing.
Cut into rectangles and serve.