I baked 3 layers of cake and all 3 have fallen.  They bake up nice and tall in the pan and as they cool the deflate...Is that normal??  They were 2" tall when I took out of the oven and now they are 1" tall.  HELP!  

I've made the Baker's German for years and have never had it deflate that much. It will deflate somewhat but shouldn't fall so dramatically. I think most important is to make sure your egg whites are whipped up really nicely before you fold them in and that your cakes go right into the oven once you pour into pans. HTH.