3 oz. red food coloring
4 1/2 tbsp. sweet-milk instant cocoa
3/4 c. butter
2 1/4 c. sifted granulated sugar
3 eggs
1 1/2 c. buttermilk
3 1/4 c. plus 2 tbsp. sifted cake flour
1 tsp. (scant) salt
1 1/2 tbsp. baking soda
1 1/2 tbsp. vanilla
1 1/2 tbsp. vinegar

Mix red coloring and cocoa together with fork and set aside. Cream butter, sugar, and eggs. Combine cocoa and creamed mixture, beat. Add buttermilk alternately with flour, salt, and soda. Fold in vanilla and vinegar. Pour batter into four 9 inch cake pans with bottoms greased and lined with wax paper. Bake 35 minutes at 350 degrees.

RED VELVET ICING:

1 box powdered sugar
8 oz. pkg. cream cheese
1 stick butter
1 tsp. vanilla
1 c. chopped nuts