Preheat oven to 180C/350F (all oven types). Butter 2 x 21cm / 8" round cake pans (sides and base) and dust with cocoa powder.
Sift the Dry Ingredients and whisk to combine in a bowl.
Place butter and sugar in a bowl and beat with electric beater or in stand mixer until smooth and well combined (use paddle attachment if using stand mixer).
Add eggs, one at a time, beating in between to combine. At first it will look curdle - keep beating until it's smooth.
Add vegetable oil, vinegar, vanilla, buttermilk and red food colouring. Beat until combined and smooth (Note 5).
Add Dry Ingredients. Beat until just combined - some small lumps is ok, that's better than over mixing.
Divide batter between cake pans. Bake for 25 - 30 minutes on the same shelf, or until a toothpick inserted into the centre comes out clean. (Note 6)
Rest for 10 minutes in the pan then turn out onto a cooling rack and allow to cool.
Beat together cream cheese, butter and vanilla for 3 minutes (this makes it really smooth and changes from yellow to almost white). Add icing sugar and beat for 2 minutes or until frosting is light and fluffy to your taste. If your frosting seems too runny (depends on quality of cream cheese/ if the cream cheese was too soft), just add more icing sugar.
Cut the top off the cake using a serrated knife (to make the layers neat).
Spread one cake with 1 ½ cups of frosting. Top with the other cake. Spread top and sides with remaining frosting.
Optional: Crumble offcuts and use to decorate the top rim and base of the cake.
