Preheat the oven to 180°C (350°F). Line 2 x 8-inch (20 cm) round cake pans with parchment paper.
Make the cake:
Add all the dry ingredients to a large mixing bowl and whisk until the mixture is well combined. Add all the wet ingredients and mix until just combined. If desired, add more food coloring and gently mix until the batter is your desired color.
Evenly divide the cake between your two cake pans.
Bake the cakes for 30-35 minutes. The cakes are ready when you insert a toothpick in their center and it comes out clean (a few crumbs are fine).
Cool the cakes in their pans for 15 minutes then transfer them to a wire rack. Cool completely.
Make the frosting:
Add the butter to a large bowl or stand mixer and beat until light fluffy. Add the vegan cream cheese and beat until just combined and there are no lumps. Add the sugar and vanilla and beat until just combined. If you overmix the frosting, it will become loose and may not hold up. Add more powdered sugar for a firmer frosting. Chill until needed.
If your cakes are domed on top, use a large serrated knife to slice a thin layer off the tops to create a flat surface. Spread or pipe around ¾ cup of frosting on the cake and place the remaining cake on top. If you have time, I recommend crumb-coating the cake by spreading a thin layer of frosting on the sides and top to 'trap' in the crumbs. Finally, coat the cake with the remaining frosting.
Keep the cake in an airtight container in the fridge until serving. Allow it to come to room temperature for 30 minutes to 1 hour before serving.
Store leftover cake in a container in the fridge for up to 3 days or in the freezer for up to 1 month. Allow the cake to come to room temperature before serving.
Notes
To make a gluten-free red velvet cake, replace the flour with 1 ¾ cup (280g) gluten-free all-purpose flour and 1 ⅓ cup (135g) almond flour. Some 1:1 gluten-free flour blends will work but I don't recommend using Bob Red Mills 1:1 flour by itself because it makes this cake gummy.
All brands of red food dye vary in color and intensity so you may need to adjust accordingly. If you use liquid food coloring (not gel), you'll need around 1-2 tablespoons. You can also color the cake with 3 tablespoons of beetroot powder. Some brands of beetroot powder and older powder tend to turn brown when baked, so make sure you use a reliable brand. If using beet powder, add it with the dry ingredients.
If you don't have vegan cream cheese, I recommend making a classic buttercream with a hint of lemon. It's also more stable than cream cheese frosting! Use the lemon buttercream recipe from my lemon cake post and adjust the amount of lemon juice to taste. The lemon flavor mimics the tangy flavor of cream cheese.
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