Prepare the cake mix according to box directions. Spray the cups of a mini muffin pan liberally with cooking spray. Using a 1 oz cookie scoop, fill the cups ¾ of the way full. Since the cupcakes are so small, the cooking time will be much shorter, probably only 7–9 minutes. Remove when a toothpick inserted comes out clean. Remove cupcakes and cool completely on a rack.
You will have enough batter left over to make more hats, or make a 9" cake layer and freeze it for an emergency. (Honey, the boss is coming home for dinner in an hour!)
Remove cupcakes from the pan and allow to cool completely.
To decorate, have ready a piping bag of white frosting and a piping bag of red frosting. If using, pour the mini pearls or the coconut onto a plate or shallow bowl.
First, use the white frosting. Make a ring all the way around the cupcake near the edge. Now roll the frosting in the pearls (or coconut) until covered. Place back on the table and with the red frosting, pipe a spiral from the center around to meet the white frosting then keep going up in smaller and smaller spirals until you get to the tip. You may need to stop and cool the frosting occasionally to prevent it from collapsing. Cut a mini marshmallow in two and place on the tip.