In a small saucepan, simmer strawberries and 2 tablespoons sugar over medium heat for 8–10 minutes, until slightly thickened. Let cool completely. Add food coloring if using.
Preheat oven to 325°F (163°C). Grease and flour a 10-inch bundt or loaf pan.
In a large bowl, beat softened butter and cream cheese together for 2–3 minutes until smooth and fluffy.
Gradually mix in the sugar. Add eggs one at a time, mixing well after each. Stir in vanilla extract.
In a separate bowl, whisk together flour, baking powder, and salt.
Add dry ingredients in three additions, alternating with the milk. Begin and end with flour. Mix just until combined—don’t overmix.
Pour half the batter into the prepared pan. Spoon in half the strawberry mixture and swirl with a knife. Repeat with remaining batter and swirl.
Bake for 70–80 minutes, or until a toothpick inserted in the center comes out clean. Cool in the pan for 15 minutes, then transfer to a wire rack to cool completely.