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Cake:.
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Preheat oven to 350. Grease and flour 2 9x1 1/2-inch round cake pans; set aside. Finely shred 1 tablespoon of peel from 1 orange. Squeeze juice from 2 oranges to measure 1/2 cup juice. Section remaining orange. In a large mixing bowl, beat egg whites to soft peaks. Gradually add 1/2 cup of the sugar, beating to stiff peaks. In another large mixing bowl, combine flour, baking powder; salt, and remaining 1 cup sugar.
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Add milk and oil to flour mixture. Beat on low speed of electric mixer until combined. Add juice and egg yolks; beat 1 minute. Fold in egg white mixture until combined. Fold in orange peel. Divide batter between pans.
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Bake for 30-35 minutes or until wooden toothpick inserted near the centers comes out clean. Cool completely on wire racks; remove from pans. Frost and top with orange sections.
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Orange Fluff Frosting:
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Shred orange peel; set aside.
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In small pan, stir together sugar and cornstarch. Stir in juice. Cook over medium-low heat, stirring until mixture thickens; cook and stir 2 more minutes.
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Remove from heat; stir in orange peel. Cover; chill 1 hour.
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Beat cream to stiff peaks; fold into chilled mixture. Frost cake.