In a separate large bowl, mix together the sugar, buttermilk, oil, eggs, and vinegar. Add the dry ingredients to the wet ingredients and beat on medium speed until well blended.
Add the vanilla and the entire bottle of red food coloring to the cake batter and mix again on low speed until well blended and uniform in color.
1 teaspoon vanilla extract, 1 bottle red food coloring
Line 2 12-cup muffin tins with papers. Fill each cupcake liner about 3/4 full with the cake batter. You will end up with 18-20 cupcakes.
Bake at 350 for 20-25 minutes, or until the center springs back when pressed lightly with your finger. Allow the cupcakes to cool completely before icing.
For Cream Cheese Frosting
Cream together the cream cheese and butter. Add the sugar and vanilla and beat with an electric mixer until smooth and creamy, scraping down sides as needed. Ice the cooled cupcakes.