Prepare the Pan: Line an 8×8-inch baking dish with parchment paper or aluminum foil, leaving some overhang for easy removal later.

Mix Base Ingredients: In a large bowl, combine red velvet cake mix and sweetened condensed milk. Stir until smooth and well combined.

Combine Cheesecake Mixture: In another bowl, beat softened cream cheese until creamy. Mix in melted butter, sifted powdered sugar, and vanilla extract.

Fold Together: Gently fold semi-sweet chocolate chips and optional red food coloring into the red velvet batter.

Layer the Mixtures: Spread half of the red velvet mixture into the prepared pan. Dollop the cheesecake mixture on top and swirl gently with a knife.

Bake and Chill: Bake at 350°F (175°C) for about 25 minutes until set but still soft. Cool completely, then refrigerate for at least two hours.