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Preheat oven to 350 degrees.
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Grease and lightly flour a 9 X 13 baking dish.
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Combine cake mix, eggs, buttermilk, oil, vinegar, and water in large bowl. Beat on low for 1 minute.
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Stop beating and add food coloring. Then beat again for 2 minutes on high
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Pour batter into the prepared pan.
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Bake about 30 minutes until toothpick inserted in center comes out clean. If making cupcakes bake for time directed on mix box.
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Let cool before frosting.
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Soften butter slightly.
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Put sugar in bowl of food processor and pulse a few times to sift.
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Cut cream cheese into pieces and add along with the butter and vanilla.
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Process until smooth.