Center the oven rack; preheat oven to 350°F. In a large bowl, whisk together the dry ingredients. In the bowl of a standing mixer, beat the butter and sugar at medium-high speed until pale and fluffy -- about 5 minutes. At medium speed, add the eggs one at a time, beating well after each addition. Beat in the sour cream, and the vanilla and strawberry extracts.
At low speed, add the dry ingredients in three additions, alternating with the Champagne, beginning and ending with the flour. At medium high speed, quickly beat in the (optional) food coloring.
Pour the batter into the prepared bundt pan. Use a spatula to spread the batter up against the sides, and away from the center (this encourages a level surface during baking). Bake until a skewer inserted in the cake comes out clean -- about 1 hour. Let the cake cool in the pan for 10 minutes, then unmold and let cool completely.
In a medium bowl, beat together the confectioners' sugar, 2 tablespoons of water, and the vanilla extract. Add more water as needed to achieve a thick but pourable glaze. Drizzle the glaze generously over the cake. Serve with coffee or Champagne!