Mix all the batter ingredients together in a bowl. Halve the mixture and color one half with red food coloring. Place a food can in the middle of one of the springform pans and spread the plain-colored batter around the can. Put the red-colored batter in the other pan. Bake both for 25 minutes at 320°F.
Once the pans come out of the oven, leave them to cool before removing the cake. Cut the red cake in half horizontally using a large sharp knife.
Beat the butter together with the cream cheese, and then add the icing sugar. Spread the lower half of the red cake with a ring of cream cheese icing, but don't put any in the center. Place the plain cake ring on top of the icing and fill the hole in the center with M&M's. Spread another layer of cream cheese icing on top of the plain cake ring. Place the second half of the red sponge on top.
Cover the cake completely with an even layer of the cream cheese icing. Arrange the second portion of M&M's in a pattern of your choice on the top and around the sides of the cake.