Step 1: Preheat oven to 350°F (175°C) and line a cupcake pan with liners.
Step 2: In a bowl, sift together flour, baking soda, cocoa powder, and salt. Set aside.
Step 3: In a separate large bowl, cream 1/2 cup unsalted butter and granulated sugar with an electric mixer until light and fluffy.
Step 4: Add eggs one at a time to the butter mixture, mixing well after each addition until fully incorporated.
Step 5: In a small bowl, combine buttermilk, red food coloring, 1 teaspoon vanilla extract, and white vinegar. Gradually add this wet mixture to the creamed butter mixture, mixing until just combined.
Step 6: Gradually add the sifted dry ingredients to the wet ingredients, mixing on low speed until just combined and no streaks of flour remain. Be careful not to overmix.
Step 7: In a very small bowl, mix baking powder with a tiny amount of water (about 1/2 teaspoon) to create a paste. Quickly fold this into the cupcake batter.
Step 8: Fill cupcake liners 2/3 full with batter.
Step 9: Bake for 18-20 minutes, or until a toothpick inserted into the center of a cupcake comes out clean. Let the cupcakes cool in the pan for a few minutes before transferring them to a wire rack to cool completely.
Step 10: For the cream cheese frosting, in a medium bowl, beat 8 oz softened cream cheese and 1/2 cup softened unsalted butter until smooth and creamy with an electric mixer.
Step 11: Gradually add 4 cups powdered sugar, one cup at a time, beating until fully incorporated and smooth. Add 1 teaspoon vanilla extract and beat until the frosting is light and fluffy.
Step 12: Once cupcakes are completely cool, pipe or spread frosting onto cooled cupcakes and decorate as desired, perhaps with some red velvet crumbs or sprinkles.