In a small bowl, combine cocoa powder, red food coloring, and 1 teaspoon vanilla to create a paste.
In the bowl of an electric mixer, cream butter and sugar until fluffy. Add eggs one at a time, then add remaining teaspoon of vanilla. With the mixer on medium speed, add in cocoa powder mixture. Beat until batter is completely red. (If at this time your batter is NOT red, you can add a little more food coloring if desired. Color will depend on brand.) Add flour and salt, mixing until just combined. Fold in chocolate chips.
Spread in the 8 x 8 pan. Bake for 25-30 minutes, or until toothpick inserted in center comes out clean. Let cool completely before frosting.
White Chocolate Frosting
Cream butter in an electric mixer until fluffy, then add vanilla. Slowly add in powdered sugar 1/2 cup at a time with the mixer on low speed. Add in melted white chocolate and beat until incorporated. To reach desired consistency, add in milk 1 teaspoon at a time with mixer on low speed. If frosting becomes too liquidy, simple add additional sugar.