Preheat oven to 350 degrees F (175 degrees C). Grease and flour two 9-inch round pans.
Beat shortening and sugar until light and fluffy. Add eggs one at a time, mixing until fully incorporated. Stir in butter flavoring. Make a paste with food coloring and cocoa and add to the shortening mixture.
Mix buttermilk, salt, baking soda and vinegar; add to batter alternating with the flour mixture.
Divide batter into prepared pans. Bake in preheated oven until cake springs back when touched lightly with a finger or tester comes out clean, 20 to 30 minutes. Cook completely on wire rack.
To Make Cream Cheese Frosting: beat butter and cream cheese with an electric mixer until smooth. Gradually beat in confectioners' sugar and 1 teaspoon vanilla. Mix until well blended.
