Preheat the oven to 350°F.
Grease a 10-inch bundt cake well with butter or vegetable shortening. Dust a layer of flour over the top of the butter, pour out the excess flour, and set aside.
In the bowl of a stand mixer, add the red velvet food cake mix, sour cream, mayonnaise, eggs, water, and canola oil. Mix using the paddle attachment until the mixture just comes together. It's okay if there are some clumps, but you don't want any dry pockets of cake mix. Add the chocolate chips and gently fold them into the batter.
Pour the batter into the prepared bundt cake pan, tapping the pan on the counter so the batter lays in an even layer. Bake the cake for 45 minutes to an hour, until a toothpick inserted in the center comes out clean or the internal temperature of the cake reads 210°F.
Remove the pan from the oven and let the cake cool in the pan for 10 minutes.
Gently run a butter knife around the edges of the pan. Turn the cake out onto a wire cooling rack and let it cool completely before frosting it.
Meanwhile, beat the cream cheese and butter using the whisk attachment of your stand mixer for about 3 minutes, until the mixture is light and fluffy. Add the vanilla and beat in the powdered sugar 1/2 cup at a time, mixing until it's smooth and creamy before adding the next addition. Taste the frosting and add additional powdered sugar to taste.
When the cake is completely cool, transfer the frosting into a pastry bag with a large, round tip or a plastic bag with a cut corner.
Place the bundt cake on a plate. Starting at the bottom edge of the cake, squeeze the frosting bag and pull a line of frosting over the top of the cake. When you reach the center hole, pinch off the frosting and repeat the process.
Store the cake, covered lightly with plastic wrap, in the refrigerator for up to 5 days. Or, freeze it for up to 3 months.
