Preheat your oven to 350°F (175°C). Line a muffin tin with parchment liners.
In a large mixing bowl, whisk together the egg and granulated sugar until well combined. Add in the buttermilk, canola oil, vanilla Greek yogurt, and vanilla extract. Mix until smooth.
In a separate bowl, sift together the all-purpose flour, cocoa powder, baking soda, and a pinch of salt.
Gradually add the dry ingredients to the wet mixture, stirring gently until just combined. Add in the red food coloring, starting with 1 tablespoon.
Divide the batter evenly among the prepared muffin cups, filling each about two-thirds full.
Bake the cupcakes for 18-20 minutes, or until a toothpick comes out clean.
Once baked, cool the cupcakes in the muffin tin for about 5 minutes, then transfer to a cooling rack.
In a mixing bowl, combine the softened cream cheese and unsalted butter. Beat until smooth. Gradually add confectioners sugar and vanilla extract, mixing until combined.
Once the cupcakes are cool, frost them using a piping bag or a spatula. Garnish with sanding sugar or sprinkles if desired.