Preheat the oven to 350 degrees. Grease 12 cupcake cups or line with paper liners.

Cream butter and sugar until fluffy.

Add eggs and blend well.

Make a paste of cocoa and food coloring and add to the butter mixture.

Sift flour and salt togethr into this mixture.

One at a time, add the following ingredients: buttermilk, vanilla, and water.

In a small bowl, combine the vinegar and the baking soda. Fold it into the cake batter. Make sure it's incorporated, but don't beat it.

Pour the batter into the cupcake cups. Bake for 15 to 20 minutes, until the cake springs back when touched.

Remove from oven and let cool for about 10 minutes, then turn out of pan and onto a rack to finish cooling completely.

Cream Cheese Frosting: Blend together the following: 1 (8-ounce) package cream cheese, softened, 1/2 cup unsalted butter, softened, 1-1/2 cups powdered sugar, and 1 teaspoon vanilla extract. Blend until smooth.