Prepare the Cake Layers:

1. Preheat the Oven: Preheat your oven to 350°F (175°C). Grease and line three 8-inch round cake pans with parchment paper.
2. Mix the Dry Ingredients: In a medium bowl, whisk together the flour, baking soda, baking powder, salt, and cocoa powder. Set aside.
3. Combine Wet Ingredients: In a large mixing bowl, beat the sugar and vegetable oil until well combined. Add the eggs, one at a time, followed by the vanilla extract.
4. Add the Buttermilk and Food Coloring: Gradually mix in the buttermilk, vinegar, and red food coloring, ensuring the batter reaches your desired shade of red.
5. Incorporate Dry Ingredients: Gradually add the dry ingredients to the wet mixture, mixing until just combined. Avoid overmixing to maintain a tender crumb.
6. Divide and Bake: Evenly divide the batter among the prepared cake pans. Bake for 25-30 minutes or until a toothpick inserted into the center comes out clean.
7. Cool the Cakes: Let the cakes cool in the pans for 10 minutes, then transfer them to a wire rack to cool completely.

Make the Cream Cheese Frosting:

8. Cream the Butter and Cream Cheese: In a large mixing bowl, beat the softened butter and cream cheese together until smooth and creamy.
9. Add the Powdered Sugar: Gradually mix in the powdered sugar, one cup at a time, until fully incorporated. Add the vanilla extract and beat until fluffy.

Assemble the Cake:

10. Level the Cake Layers: If necessary, use a serrated knife to level the tops of the cake layers for even stacking.
11. Frost the Layers: Place one cake layer on a serving plate or cake stand. Spread a generous layer of frosting on top. Repeat with the second and third layers.
12. Frost the Outside: Use a spatula to spread a thin crumb coat around the entire cake. Chill for 15 minutes, then apply the final layer of frosting.
13. Decorate: Decorate as desired with red velvet crumbs, sprinkles, or edible flowers.