Can you help me with this cake recipe?

Here’s the recipe: http://www.joyofbaking.com/MeringueCake.html

I have two questions:

1. This cake seems odd because you’re supposed to put the meringue on top of the unbaked cake layer and bake them together. Wouldn’t the meringue layer prevent the cake layer from cooking all the way? Or would it sink into the cake layer or something? Seems tricky. I’m considering baking the cake layers first and adding the meringue (unbaked) at the end.

2. What’s the secret to those “stiff, white peaks?”

What do you think, fellow bakers? I’m trying to make this for my friend’s birthday today, so I want it to be nice. :)