If anything "color" is correct, being the original Latin spelling. The Normans started misspelling it by the time they went about conquering the British Isles, but Middle English reflects both spellings.

On the other hand, English is descriptive rather than prescriptive, so both spellings might as well be equally correct.

On the third hand, they're both wrong if we want to get old school about it; no sense in catering to a bunch of French invaders when we have the perfectly good words "blee" and "hue".