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 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.
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 but not overlapping the white candy. Tap gently to aow 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. When ready, place one Santa hat on each cupcake.
Notes
If the candy melts are too thick, add 1 to 2 teaspoons of coconut oil or vegetable shortening.
If the candy melts are too thin, place them in the refrigerator for 5 to 10 minutes.
You can also use white almond bark in place of the white candy melts.
When spooning the candy melts over the cone, try to get a smooth and even coating for the best visual effect.
If you're having trouble with the marshmallow sticking, try using a bit of the melted candy as a 'glue'.
For a fun twist, use flavored marshmallows or sprinkle them with edible glitter for an extra festive touch.
It's always better to prepare the Santa Hat cones a day before for them to dry and harden properly. This will make it easier to place them on top of the cupcakes.