In large bowl, beat 1 cup softened butter and the granulated sugar with electric mixer on medium speed 2 minutes, scraping bowl occasionally, until fluffy. Beat in jam. Beat in eggs, one at a time, just until smooth. Beat in 1 teaspoon vanilla and the food color. On low speed, beat in one-third of the flour mixture, then half of the milk, beating after each addition, just until smooth. Repeat with flour mixture and milk, ending with flour mixture, scraping side of bowl occasionally. Spread batter evenly in pan. Tap cake pan on counter 2 or 3 times to eliminate air bubbles from batter.