Yield: 12 Santa Hats
12 waffle cones
6 mini marshmallows
9 ounces (1 1/2 cups) red candy coating wafers
12 frosted cupcakes
Using a sharp serrated knife, gently saw through the waffle cones. If you’re making standard-size cupcakes, make each hat about 3 inches long. If you’re decorating mini cupcakes, aim for 2 inches instead.
Cut the mini marshmallows in half, so you have 12 marshmallow halves. Place the red candy coating in a microwave-safe bowl and microwave in 30-second increments until melted and smooth, stirring after every 30 seconds to prevent overheating.
Cover a baking sheet with waxed paper or parchment paper. Submerge one of the waffle cone tips in the red coating and push it down so it’s completely covered. Use a wooden skewer to scoop it out of the coating and hold it over the bowl until all the excess drips back down into the bowl.
Transfer the dipped cone to the baking sheet. Press a mini marshmallow firmly on top of the cone. Repeat the process until all of the cones are dipped and have a marshmallow topper. Refrigerate the tray briefly to set the cones, for about 10 minutes.
Re-warm the red coating, if necessary. Put the white nonpareils in a small bowl. Dip the bottom of a cone into the coating, coming about 1/4-inch up from the bottom, then press the bottom of the cone into the white nonpareils. Put the Santa hat back onto the baking sheet and repeat until the rest of the hats have the white sprinkles on the bottom.
Store the Santa Hats in an airtight container at room temperature until ready to use. Pop them on top of cupcakes, mini cupcakes, or even a full-sized cake.