Yes, you can.
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the cake is a block that you place. after placing the block of cake you can then use on the cake for health 6 times.
Sugar in minecraft is used to make a cake but you also need 3 buckets of milk and 1 egg when you have made the cake you can eat it to gain your health. Also, in 1.4.2, if you combine sugar, an egg, and a pumpkin together, you will get pumpkin pie.
On the Xbox 360 edition (the one I Play on) you have to place the cake down and then go near it and press one of the buttons. You can take bites from the cake but after so many it will disappear I'm not sure for pc though
cake: 354 cookies:357
No, once placed a cake can't be moved. It has to be eaten, or destroyed.