S.G.
I did carrot cake with cream cheese frosting for the 1st birthday cakes. I also allowed my kids to have sugar in moderation. Banana cake would also be a good option. Anglefood cake with fresh strawberries and whipped cream is a healthy low fat option. You can control how much sugar you add to the cake and the whipped cream. I don't think my kids ate more than two bites of their cake anyway.