Preheat your oven to 350°F (175°C). Line your muffin tin with paper liners or grease it with cooking spray.
In a mixing bowl, combine the softened cream cheese, 1/2 cup of granulated sugar, and 1 teaspoon of vanilla extract. Beat with an electric mixer until smooth and creamy. Set aside.
In a large bowl, whisk together 2 cups of flour, 2 teaspoons of baking powder, 1 teaspoon of salt, and 2 tablespoons of cocoa powder. Make sure there are no lumps!
In another bowl, whisk together 1 cup of canola oil, 1 cup of buttermilk, 1 large egg, and 2 teaspoons of red liquid food coloring until well combined.
Pour the wet ingredients into the dry ingredients and stir gently until just combined. Be careful not to overmix; a few lumps are okay!
Scoop about 1/4 cup of the muffin batter into each muffin cup, filling them about halfway. Then, add a generous dollop of the cream cheese filling in the center of each muffin. Top with another scoop of muffin batter until the cups are about 3/4 full.
Bake in the preheated oven for 18-20 minutes or until a toothpick inserted into the muffin comes out clean (except for the cream cheese filling).
Once baked, remove the muffins from the oven and let them cool in the tin for about 5 minutes. Then, transfer them to a cooling rack to cool completely. Enjoy your beautiful Red Velvet Cream Cheese Muffins warm or at room temperature!