Beat sugar and oil at medium speed with an electric mixer until blended. Add eggs, 1 at a time, beating until blended after each addition. Add food coloring and vinegar, beating until blended.
Combine flour and next 3 ingredients; add to sugar mixture alternately with buttermilk, beginning and ending with flour mixture, beating just until blended. Stir in vanilla. Pour batter into muffin pans lined with paper liners, filling two-thirds full.
Bake at 350° for 18 minutes or until a wooden pick inserted in center comes out clean. Remove from pans, and cool completely on a wire rack. Spread generously with Cream Cheese Frosting. Sprinkle with coconut, if desired.