Tom Cruise and Katie Holmes threw a fairytale princess-themed birthday party for their daughter Thursday. The couple invited their family and closest friends to their Los Angeles home to celebrate Suri turning three.

Suri and her young pals enjoyed an elaborate treasure hunt and an enormous cake in the shape of Belle from Disney film "Beauty and the Beast."

A source said: "They just wanted to keep it small and make it fun for Suri and her friends."

As well as sparing no expense on her party, Tom and Katie are spending $1 million on her education.

The couple are so desperate to ensure their child has a well-rounded upbringing, they have splashed out on classes including foreign language, art and dance.

A source said: "It doesn't matter what Suri is doing, Tom wants her to be able to do it better than any other child. All parents think that their kids are special, but Tom and Katie firmly believe Suri is gifted."

"She is learning French and Spanish and has a tutor she sees once a week."

"Suri has shown a real love of dancing, so Tom and Katie are encouraging her as much as possible. She practices ballet, tap and modern dance for hours, nearly every day."

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