Preheat your oven to 325 degrees. Prep 3 8 inch cake pans by spraying the bottom of the pans with cooking spray, lining with parchment paper, then spray again. Set aside.
In a medium size bowl whisk together the cocoa powder, baking powder, baking soda, salt and all-purpose flour. Set aside.
In a bowl of a stand size mixer fitted with the paddle attachment, cream the butter, oil and sugar on medium high speed until light and fluffy. About 4 minutes. The mixture should turn white and double in size.
With a rubber spatula, scrape down the sides and the bottom of the bowl. With the mixer on medium speed, start adding the eggs one at a time, mixing for 30 seconds after each addition. Scrape the sides and bottom after each addition.
Once the eggs have been added, add the vanilla, LorAnn’s emulsion (or red food coloring), sour cream, and vinegar mix on low just until incorporated about 30-60 seconds.
Scrape down the sides of the bowl and turn the mixer on low and add half of the flour mixture and half of the buttermilk to the butter mixture and mix until just incorporated. Finally, add the rest of the flour mixture and the last of the buttermilk, while mixing on low. Do not over mix, this should take 30-45 seconds.
Once mixed, evenly divide all of the batter into the prepared pans (about 18 ounces in each 8-inch pan) Bake for 33-35 minutes. I checked mine at 33 minutes and it needed about one more minute. Insert a toothpick and if it comes out clean or with only a few crumbs, your cake is done.
Allow the cakes to cool in the pans for 15 minutes and then remove them from the pans and transfer them to a wire rack and let them come to room temperature. Wrap them in plastic wrap and either freeze or refrigerate them.
For the cream cheese buttercream
In the bowl of an electric mixer, combine the butter and cream cheese. Beat on medium speed for about 2 minutes. Scrape down the sides and bottom of the bowl. Beat again for 2 more minutes.
With the mixer on low, add the powdered sugar, followed by the cream, vanilla extract, and a pinch of salt. Beat on low just until combined. With a rubber spatula, scrape down the sides of the bowl.
Turn the mixer up to medium-high speed and beat for about 3 to 5 minutes.
With a rubber spatula or a wooden spoon, beat out all of the air pockets by hand for a smooth look.
When the cake is cooled, use an offset spatula and frost the top of the cake. This cake is good served room temp or cold! However you serve it, it will not disappoint.
Assembly
With a piping bag, pipe a small dollop of frosting onto a cake board. Place the first red velvet, top side up, onto the board.
Evenly spread about ¾ cup of the cream cheese buttercream on top of the cake layer.
Place the second cake layer on top of the cream cheese buttercream and repeat the steps for the first layer. Place the final cake layer, top side up, on the second layer of filling.
Frost a thin coat of frosting around the cake to lock in the crumbs. This is the crumb coat. Freeze the cake for about 10 to 15 minutes to set the frosting.
Finish frosting and decorating the cake with the remaining caramel buttercream. Serve at room temperature, and will hold wrapped plastic wrap and stored in the fridge.