SANTA HATS: Line a rimmed baking sheet pan with parchment paper and set aside.

Pour the sparkling sugar into a small bowl and set aside.

In a microwave safe bowl, melt 1 package of red candy melts according to package directions. Stack two solo cups together (to make the cup sturdy and clean up a breeze) and pour the melted candy into the cup.

Take a sugar cone and dip the pointed end of the cone into the melted candy, place your pointer and index fingers into the middle of the cone and your thumb on the outside of the cone, now twist the cone in the melted candy gently shaking off any excess (you may need to tip the cup as you dip the remaining 11 cones).

Immediately sprinkle the candy cones with sparkling sugar and place on the prepared baking sheet to dry completely, about 1-2 hours. In a separate microwaveable bowl, repeat the steps above with the remaining package of candy melts, 12 cones, and sparkling sugar.

CUPCAKES: Preheat the oven to 350 degrees. Line two 12-cup muffin tins with paper cupcake cups; set aside.

Pour the cake mix into a large bowl. Make a “well” in the center of the cake mix and add 4 eggs and 1 cup milk. Using an electric hand mixer, beat to combine. Slowly add the melted butter and peppermint extract, if using and continue to beat for 2 minutes.

Using an ice cream scoop, fill each cupcake cup 1/2 full. Bake according to package directions, about 14-18 minutes. Cool for about 5-10 minutes before removing from the pans. Transfer cupcakes to cooling racks to cool completely.

FROSTING: In a stand mixer fitted with a whisk attachment, beat the butter and confectioners’ sugar on low speed until crumbly, add vanilla extract and 2 tablespoons milk. Increase the speed to high and beat for 3 minutes or until the mixture is thick, creamy, and pale in color adding more milk as needed. (The frosting needs to be a little stiffer than usual, so the gnomes’ beards don’t slide off the sides of the cupcakes. You can test the consistency by piping a small amount on the outside of a drinking glass. If the frosting sticks, it is firm enough. If it slides down the side of the glass, then add more confectioners’ sugar to the frosting.)