Heat the oven to 175 °C or 350 °F, line an 8-inch cake tin with baking paper, and prepare a 7-inch cake tin that is 4 inches high with baking paper on the base and acetate around the sides. The acetate helps the mousse set with smooth edges and makes unmolding much cleaner later.
Warm the milk and butter together in a small bowl in the microwave for about 30 seconds, then leave the mixture aside to cool. The butter should be fully melted, and the bowl should no longer feel hot before it goes near the whipped eggs.
Beat the eggs, caster sugar, and vanilla extract in a large bowl with electric beaters until the mixture turns pale and expands to roughly triple its starting volume. It should look thick and airy, and ribbons should briefly sit on the surface before sinking back.
Sift in the matcha tea powder and all-purpose flour, then fold gently with a spatula until the dry pockets disappear. The batter should stay fluffy and evenly green without streaks of flour hiding at the bottom.
Pour the cooled milk mixture down the side of the bowl and fold only until incorporated. Stop as soon as the batter looks smooth, because over-mixing will knock out the volume that keeps the sponge light.
Transfer the batter to the lined 8-inch tin and bake for 15 to 20 minutes. The sponge should spring back lightly when touched and keep a soft, even surface.
Cut the baked sponge with a 7-inch cutter and place the trimmed round inside the lined 7-inch tin. Brush or wipe away loose crumbs from the acetate so dark specks do not show through the white mousse.