In a small bowl, combine milk and vinegar. Set aside.
In a large mixing bowl, cream butter and sugar until light and fluffy.
Add eggs, and beat until well-combined. Mix in vanilla.
In a medium bowl, combine flour, cocoa, and baking soda.
Add dry ingredients to mixing bowl alternately with the sour milk (milk + vinegar mixture). Beat until just combined.
Divide cake batter evenly between 2 bowls. Color one portion with red food coloring, and one portion with green food coloring. For me, this required about 1 tsp. of gel paste for each color.
Pour each batter individually into a greased 8-inch round cake pan (red goes into one pan, green into a second pan).
Bake at 350 degrees for 20-25 minutes or until a toothpick comes out clean.
Cool completely. Meanwhile, prepare frosting.