Spoon 2 tablespoons vanilla frosting into a small zip-lock bag. Frost cupcakes with remaining vanilla frosting.
Pour some coconut into a bowl. Roll tops of frosted cupcakes in coconut to cover.
Pour a 1/4 cup pink sugar into a small bowl. Using scissors, cut large marshmallows in half crosswise. Press cut side of each marshmallow into pink sugar to make ears. Insert one pretzel stick into the short end of each marshmallow ear. Insert the pretzel-stick end into the cupcake to make the ear stand up. Repeat placing two ears on each cupcake.
Snip a small corner from zip-lock bag with vanilla frosting. Using scissors, cut mini marshmallows in half crosswise to make cheeks. Pipe small dots of frosting and attach the brown M&M's eyes, pink peanut M&M's nose, and mini marshmallow cheeks. Cut licorice into 1 1/2-inch pieces and insert as whiskers. Repeat with remaining cupcakes.