Originally Posted by and_then_there_was_cake
Do you know if I can just have the customer sign a waiver stating that the cake is made in my home.
You can certainly have the customer sign a waiver, but it would be a worthless piece of paper since a contract agreeing to waive liability for an illegal activity is automatically void. Plus it's not the customer you need to worry about so much as the health department.
In fact, this is probably worse for you...if you're caught, the "waiver" shows that you knew what you were doing was illegal but you did it anyway, so you couldn't claim ignorance.
Regarding hiring someone to help you...I'm not sure how many hours you need to hire them relative to how many hours you rent, but even if it's 1:1 the $7/hour rate is so cheap you would probably still come out ahead compared to the hourly rates of other commercial kitchens.