This is a know bug that is already in the system. The problem is more than likely caused by the cake counting spells in spellbooks as individual objects in your pack and thus thinking that you are already over the backpack item limit.Once made, a three tiered cake won't allow you to remove pieces from it. It gives a system message of "You do not have enough space for this in your backpack!" even when you are clearly nowhere near the item or weight caps.