Preheat your oven according to the instructions on the cake mix box. Line a muffin tin with cupcake liners.

Prepare the cake batter following the instructions on the box. Typically, you'll need to mix the cake mix with eggs, oil, and water until well combined.

Fill the cupcake liners about two-thirds full with the cake batter. Bake the cupcakes in the preheated oven as per the package instructions. Use a toothpick to check if they're done – it should come out clean when inserted into the center of a cupcake. Once baked, let the cupcakes cool completely on a wire rack.

Once the cupcakes are completely cooled, spread the white frosting over half of each cupcake. Spread red frosting across the opposite half. Press the miniature marshmallows along the seam where the two colors meet.

Over the red frosting, sprinkle red sanding sugar.

On the white side, press two chocolate chips below the hat for the eyes. Dip the cupcake into the pearl sprinkles for the beard. Then, place the red candy for the nose.

Allow the decorated cupcakes to set for a little while, so the decorations stay in place.