Preheat oven to 375°F. Mix cream cheese, 2 tablespoons of the granulated sugar and 1/2 teaspoon of the vanilla in small bowl until well blended and smooth. Set aside.
Mix flour, remaining 1 cup granulated sugar, cocoa powder, baking powder, baking soda and salt in large bowl. Set aside. Beat egg in medium bowl. Stir in buttermilk, oil, food color and remaining 1 teaspoon vanilla. Add to flour mixture; stir just until moistened.
Divide batter evenly among into 12 paper-lined muffin cups. Place 1 teaspoon cream cheese mixture in center of each muffin.
Bake 15 to 18 minutes or until toothpick inserted in center of muffin comes out clean. Cool in pan 5 minutes. Remove from pan; cool completely on wire rack. Sprinkle with confectioners’ sugar.