Preheat oven to 350 degrees F. Generously grease and flour 12-cup fluted tube pan.
Combine 3 cups flour, granulated sugar, baking powder and salt in large bowl. Beat sour cream, eggs and vanilla extract with fork or whisk in medium bowl until smooth.
Add butter and 1 cup sour cream mixture to flour mixture. Beat on low speed until thoroughly combined; beat 1 minute on high speed. Add remaining sour cream mixture; beat on medium speed until fluffy. Stir together cinnamon chips and remaining 2 tablespoons flour until chips are coated; gently stir into batter. Pour batter into prepared pan.
Bake 60 to 70 minutes or until wooden pick inserted in center comes out clean. Cool 20 minutes; remove from pan to wire rack. Cool completely.
Sprinkle with confectioners' sugar, if desired.
Yields 12 to 16 servings.