Step 1: Preheat your oven to 350°F (175°C) and grease two 9-inch round cake pans for your Red Velvet Cake with Cream Cheese Frosting.
Step 2: In a large bowl, sift together the flour, sugar, baking soda, salt, and cocoa powder.
Step 3: In a separate medium bowl, whisk together the oil, buttermilk, eggs, food coloring, vinegar, and vanilla until well combined.
Step 4: Gradually add the wet ingredients to the dry ingredients, mixing until the batter for the Red Velvet Cake with Cream Cheese Frosting is smooth.
Step 5: Divide the batter evenly between the prepared pans and bake for 30-35 minutes or until a toothpick comes out clean.
Step 6: Let the cakes cool in the pans for 10 minutes, then turn them out onto wire racks to cool completely.
Step 7: To make the frosting, beat the cream cheese and butter together until smooth, then gradually add the powdered sugar and vanilla.
Step 8: Once the cake layers are completely cold, frost the top of one layer, place the second layer on top, and frost the top and sides of the entire Red Velvet Cake with Cream Cheese Frosting.