Step 1: Preheat your oven to 350°F (175°C). Grease and flour two 9-inch round cake pans. Line the bottoms with parchment paper if desired.
Step 2: In a large bowl, whisk together the sifted flour, granulated sugar, baking soda, salt, and cocoa powder. Set aside.
Step 3: In a separate medium bowl, whisk together the buttermilk, vegetable oil, eggs, red food coloring, white vinegar, and vanilla extract until well combined.
Step 4: Pour the wet ingredients into the dry ingredients and mix with an electric mixer on low speed until just combined. Do not overmix; a few lumps are fine.
Step 5: Divide the batter evenly between the two prepared cake pans. Bake for 25-30 minutes, or until a wooden skewer inserted into the center comes out with moist crumbs (not wet batter).
Step 6: Let the cakes cool in the pans for 10-15 minutes before inverting them onto a wire rack to cool completely. Ensure cakes are entirely cool before frosting.
Step 7: To make the Cream Cheese Frosting: In a large bowl, beat the softened cream cheese and softened butter with an electric mixer on medium speed until smooth and creamy (about 2-3 minutes).
Step 8: Gradually add the sifted powdered sugar, 1 cup at a time, mixing on low speed until combined, then increase speed to medium and beat until light and fluffy. Add the vanilla extract and beat until incorporated.
Step 9: If the frosting is too thick, add milk or cream one tablespoon at a time until desired consistency is reached. Be careful not to make it too thin. Beat for another minute until fluffy.
Step 10: Once the cakes are completely cool, frost the top of the first layer, place the second layer on top, then frost the top and sides of the entire cake. Garnish with cake crumbs or sprinkles if desired.