Preheat the oven to 325 degrees F.
Grease and flour two 8" round cake pans.
In a medium-sized mixing bowl, add the oil, sour cream, lemon zest, lemon juice, vanilla extract, lemon extract, eggs and gel food coloring. Mix well with a whisk and set aside.
In a large mixing bowl, add the flour, sugar, baking powder, baking soda, salt and lemon pudding mix.
Cut the almost room-temperature butter into chunks. Turn the mixer on low and slowly add the butter, a bit at a time, to the dry ingredients. Once all the butter has been added, mix on medium to medium-high until all the flour is coated with the butter and the mixture is crumbly. It should have a sand-like texture.
If the butter is too warm or if it's mixed for too long, it will form a paste and this will not produce a good cake texture.
Pour about a third of the liquid mixture into the dry mixture and mix on low to medium until well combined...about 30 seconds to one minute.
Pour the last of the liquid mixture into the dry mixture and mix again only until well combined. Don't overmix the batter at this point. Stop mixing once everything is well incorporated, usually no more than about 20-30 seconds.
Use a silicone spatula to scrape down the sides and bottom of the bowl. Mix again for only about 10 to 15 seconds.
Pour the cake batter into the prepared pans.
Slide the cake pans into the oven and bake at 325 degrees F for about 35-45 minutes ovens vary. A toothpick inserted into the center of each layer should come out clean or with a few moist crumbs on it, but no raw batter.
Once baked, set the pans on a cooling rack for about 20 minutes, then turn the cake layers out of the pans and let cool completely on the cooling racks before adding any frosting.