Cream sugar and oil in mixing bowl; add eggs and beat well. Add vinegar and food coloring; beat well. Sift flour, soda, salt, and cocoa together and add to the creamed mixture alternately with the buttermilk. Add vanilla and beat well. Pour into 2 greased and floured cake pans. Bake at 350° for 30-35 minutes.
For Icing: Cream margarine and cream cheese in a bowl; add vanilla. Sift powdered sugar and gradually add to the creamed mixture. Add nuts and mix well. Spread between layers, top, and sides of the cooled cake.
Ingredients
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1 1/2 cups sugar
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2 cups Vegetable Oil
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2 Eggs, beaten
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1 teaspoon vinegar
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1 bottle red food coloring (2 oz. bottle)
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2 1/2 cups Flour
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1 teaspoon soda
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1 teaspoon Salt
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2 tablespoons cocoa
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1 cup buttermilk
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1 teaspoon vanilla
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Icing for Red Velvet Cake
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1 stick margarine
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1 package cream cheese (8 ounce pkg.)
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1 teaspoon vanilla
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1 pound powdered sugar
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1 cup chopped nuts
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