Ugly Sweater Cake

Name: Ugly Sweater Cake
Cook time: 2 h 5 min
Total time: 2 h 5 min
Cuisine: American
Ingredients: 1.5 cups granulated sugar; 1 cup (8 ounces) unsalted butter, softened, divided, plus more for greasing baking pan; 2 large eggs, at room temperature; 2.5 cups (about 10⅝ ounces) all-purpose flour, plus more for baking pan; 3 tablespoons unsweetened cocoa; 1.5 teaspoons baking powder; 1 teaspoon baking soda; 1 teaspoon kosher salt; 1 cup whole milk, at room temperature; 3 tablespoons water, at room temperature; 2 tablespoons red velvet bakery emulsion (such as LorAnn Oils), or red liquid food coloring; 1 teaspoon white vinegar; 1 (4-ounce) white chocolate baking bar (such as Ghirardelli), chopped; 1 (8-ounce) package cream cheese, softened; 0.5 cup (4 ounces) unsalted butter, softened; 1 teaspoon vanilla extract; 2 cups (about 8 ounces) unsifted powdered sugar; Green food coloring gel; Peppermint candies or other round candies; Festive candy sprinkles