The problem is every time I bake a cake the sides of the cake always shrinks away from the sides. Leaving me with a smaller cake than I was supposed to have. Example: if I try to bake a cake two inches high i always end up having a cake that is 1 and a half inches tall so I have to make another cake to make up for what is missing

I use the parchment paper to cover my cake tin and I put more batter to make it taller but that does not solve the problem. That didnt happen before it just started being a problem. Does any one have any experience with this problem and how I can solve it

Has anything changed? Your pans, your recipe, the humidity? Have you checked to see if the temp in the oven is correct? Buy an oven thermometer and see if your oven is correct. Mine is off 25 degrees. If yours has gotten off it may be cooking too slowly so your cake isn't rising enough.

Are you baking from scratch? Is your baking powder or soda old? That can effect rising as well.

Thanks Remnan333, i sure did not know that. 
 

Sillywabbitz  I will check on oven thermometer.