Preheat oven to 350 degrees F. Grease and line with parchment paper 3 8-inch cake pans. Set aside.
Sift flour, cocoa powder, baking soda, salt, and baking powder. Set aside.
Cream butter, oil, and sugar with the paddle attachment in an electric mixer on medium speed for 10 minutes.
Once fluffy and light in color, add eggs and vanilla extract. Beat well to combine.
With mixer on low speed, add flour mixture in 3 additions alternately with red wine, beginning and ending with flour mixture. Beat until just combined.
Divide batter evenly between prepared cake pans and bake in preheated oven for 30-35 minutes, or until a wooden skewer inserted into the center comes out clean. Remove from oven and let cool 10 minutes in pan before transferring to a cooling rack to cool completely.
To make the frosting, beat cream cheese and butter with the paddle attachment until light and fluffy. Add cocoa powder and beat until combined. Gradually add powdered sugar. Finally add milk, and vanilla. Beat until smooth.
Assemble the cake: Place one cake layer onto your cake stand and evenly spread a layer of frosting. Repeat with second layer. Top with third layer and spread the remaining frosting over the top and sides of cake.