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Preheat oven to 350°F. For the Cupcakes, beat cake mix, sour cream, water, oil, food color, eggs and vanilla in large bowl with electric mixer on low speed just until moistened, scraping sides of bowl frequently. Beat on medium speed 2 minutes. Spoon batter into 24 paper-lined muffin cups, filling each cup 2/3 full.
Bake 20 minutes or until toothpick inserted into cupcake comes out clean. Cool in pans on wire rack 5 minutes. Remove from pans; cool completely.
For the Frosting, beat cream cheese, butter, sour cream and vanilla in large bowl until light and fluffy. Gradually beat in confectioners’ sugar until smooth. Frost cooled cupcakes with frosting.