Prepare a baking sheet with parchment or waxed paper.
In a microwave safe bowl, place the red candy melts. Heat in the microwave for 30 seconds and stir. Continuing heating in 30-second increments, stirring well after each. If the candy melts overheat or is not smooth enough to pour, add 1 to 2 teaspoons of coconut oil or vegetable shortening and stir well.
With your hand inside the ice cream cone, spoon the red over the cone. Tap gently to allow the excess to drip back into the bowl.
While the red candy melts are still wet, top the cone with a marshmallow.
Place on the prepared baking sheet to dry.
In a microwave safe bowl, place the white candy melts. Heat in the microwave for 30 seconds and stir. Continuing heating in 30-second increments, stirring well after each. If the candy melts overheat or is not smooth enough to pour, add 1 to 2 teaspoons of coconut oil or vegetable shortening and stir well.
Holding the dry cone, spoon the white around the rim of the ice cream cone. Tap gently to allow the excess to drip back into the bowl. Allow to dry completely.
Roll in mini marshmallows and place back on baking sheet to dry.
When ready, add some icing to top of cupcake and place one Santa hat on top of each cupcake. Enjoy every bite!