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Beat the butter at medium speed with an electric mixer until creamy; gradually add the sugar, vinegar, and vanilla, beating well.
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Add the eggs, 1 at a time, beating until blended after each addition.
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Add the food coloring, beating until combined.
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Combine the flour, and the next 3 ingredients; add to butter mixture alternately with buttermilk, beginning and ending with flour mixture. Beat at low speed until blended after each addition. Pour into 2 greased and floured 9-inch cakepans.
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Bake at 350 degrees for 20-22 minutes or until a wooden pick inserted in center comes out clean.
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Cool in pans on wire racks for 5 minutes; remove from pans and cool on wire racks.
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Spread Cream Cheese Frosting between layers and on top and sides of cake.
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Cream Cheese Frosting: beat cream cheese and butter until creamy; gradually add sugar and vanilla, beating well.
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Stir in pecans if desired.