First, preheat your oven to 350F. Grease and flour an 8×3 round pan and set aside. Sift together all dry ingredients needed for the cake except for the sugar. Sift twice as possible, then set aside.
Using an electric mixer on medium speed, cream the butter and sugar together until pale yellow. Set speed to low, add eggs one at a time and beat well until fluffy, then set aside.
In a measuring cup, combine water, fresh milk and food color gel and mix well until well combined.
Alternately, add dry and liquid ingredients into the batter mixture. Start with 1/3 part of dry ingredients and a half of the liquid. Beat and Scrape the sides of your mixing bowl. Repeat adding dry, then liquid and lastly end with dry and mix until well combined but do not over mix.
Pour the batter into a prepared 8-inch round pan and bake for about 25-30 minutes or until inserted toothpick in the center comes out clean. Fire off, let your cake cool down completely on a wire rack.