Preheat oven to 350 F. Grease and line 2 9-inch round cake pans with parchment paper. In a large measuring cup, whisk together milk and vinegar, let sit for 10 minutes.
In another large bowl whisk together flour, sugar, cocoa powder, salt, baking powder and baking soda. In another bowl, whisk together the milk mixture with eggs, oil, vanilla extract and red food coloring.
Pour the milk and egg mixture into the dry ingredients and beat with a mixer until smooth. Evenly divide the cake batter between the two prepared cake pans. Bake for 35 minutes. Let cool completely.
For the cream cheese frosting, in a large bowl with either a hand or a stand mixer, beat softened butter and cream cheese together until fluffy. Gradually add in the powdered sugar until all is combined. Add in vanilla extract and milk as needed to thin.
Layer cake and frost and decorate.
