I've made this recipe for Red Velvet Cake since 1964 & its one of my favorites but follow directions closely.
Red Velvet Cake
Cream together 1 1/2 cups sugar, 1/2 cup shortening. Cream about 5 - 10 minutes. Add 2 whole eggs, two 1/2 oz. bottles red food coloring & 1 tsp. vanilla.
In another bowl sift together: 1/2 tsp. salt, 2 Tbsp. cocoa, 2 cups flour. Add a little at a time to the creamed mixture, alternately with 1 cup buttermilk..
Mix in 1 tsp. baking soda & 2 Tbsp. vinegar (This causes a reaction that's fun to watch)
Divide into 3 greased & floured round cake pans (I also line the bottom with waxed paper).
Bake for 25-30 minutes at 350 degrees.
Icing: 1 1/2 cups milk 1/4 cup flour
Cook until a paste forms. Remove from heat & let cool.
Cream together 1 cup granualted sugar, 1 cup shortening.
Add 1 tsp. salt, 1/2 tsp. vanilla. Add this mixture to the paste mixture, beating until smooth.
Frost cake & sprinle sides & top with coconut.