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Start by preheating your oven to 160°C with the fan on and prepare two 9-inch sandwich tins by lining them.
In a large bowl, sift together all the dry ingredients.
Next, add the wet ingredients to the dry mixture and stir until everything is smooth, being careful not to overmix.
Pour the batter evenly into the prepared tins and bake for about 30 minutes, or until a skewer inserted into the center comes out clean.
While the cakes are still warm, brush them with a mixture of icing sugar and hot water to help retain moisture.
Allow the cakes to cool completely before frosting them.
For the frosting, whisk the butter until it becomes pale and fluffy, then incorporate the cream cheese and vanilla.
Gradually mix in the sugar until the frosting is smooth and creamy, taking your time to achieve a light texture.
To assemble the cake, trim the domes off the tops of the cakes for even layers, saving the crumbs for decoration.
Spread cream cheese frosting between the layers of cake, then cover the top and sides with more frosting.
Finish by sprinkling the reserved red velvet crumbs on top for a classic touch.