Preheat the oven to 350F. Line 3, 8-inch cake pans with parchment paper (or, 2, 9-inch cake pans); set aside.
Combine the milk and vinegar; set aside for 5 to 7 minutes to sour the milk. Meanwhile, prepare the remaining wet ingredients. Place the sugar and butter into a mixing bowl and using stand mixer or hand mixer, whisk the two ingredients together until fluffy. Add the eggs and vanilla and keep whisking the mixture for a few more minutes. Pour in the soured milk and mix again.
Prepare the dry ingredients. Combine the flour, baking powder and cocoa powder in a large bowl. Using a fine-mesh sifter, add the flour into the cake batter, whisking after each addition. Be careful not to over-mix the batter; mix just until combined! Add the food coloring. The amount you will need depends on the type of food coloring you use. Gel food color tends to be more concentrated.
Divide the cake batter between prepared pans. Bake in preheated oven for 40 to 45 minutes, or until a toothpick inserted into the center comes out clean. Remove cakes from pans and onto cooling racks to cool completely before frosting.
For Cream Cheese Frosting:
Prepare the frosting. Place the softened cream cheese and butter into a mixer bowl. Whisk on high speed for 5 to 7 minutes, scraping sides of bowl often, until the mixture is light and fluffy. Add a few tablespoons of cream and the vanilla extract. Begin adding the confectioner's sugar 1 cup at a time. Beat the frosting for about 5 minutes until light and airy. If the frosting is too soft, refrigerate it for 1 hour.
Assembling the Cake:
Assemble the cake. Use a sharp, serrated knife to even off the top of each layer. Preserve the scrapes if you wish to garnish the cake with crumbs. Spread a very generous amount of frosting between each layer and on top and sides. Garnish top with cake crumbs or strawberries.
Keep cake covered and refrigerated. Remove from refrigerator 1/2 hour prior to serving.