Preheat the oven to 350 degrees F (180 degrees C). Grease two 9-inch (23 cm) round cake pans and line the bottoms with parchment paper. Stir the flour with the baking powder, cinnamon, baking soda, nutmeg and ginger into a bowl. Stir the ketchup, water and colouring in a separate bowl. Set aside.
Beat the butter and blend in the sugar in a large bowl until smooth. Beat in the eggs. Add the flour mixture and ketchup mixture. Beat on low, scraping down the bowl as needed, until combined. Increase the speed to medium-high and beat for 1 minute. Divide the batter evenly between the prepared pans. Bake for 30 minutes or until the centre springs back when touched lightly. Cool the cakes for 15 minutes before turning onto a rack to cool completely.
Frosting: Beat the cream cheese, butter and vanilla on medium speed for 2 minutes or until smooth. Gradually beat in the sugar on low, scraping the bowl as needed. Beat on high until fluffy. Frost between the cake layers and over the sides and top of the cake. Makes 12 servings.
