Heat oven to 350°F. Place paper baking cups into 24 muffin pan cups; set aside.
Combine all cupcake ingredients in large bowl; beat at medium speed until well mixed.
Fill prepared muffin cups 2/3 full. Bake 18-20 minutes or until toothpick inserted into center comes out clean. Remove to cooling rack. Cool completely.
Place 3/4 cup butter into bowl; beat at medium speed until creamy. Add powdered sugar and vanilla; continue beating until well mixed. Add marshmallow crème; continue beating until well mixed. Frost 12 cupcakes. (The remaining 12 cupcakes can be eaten as is or frozen in a container with a tight-fitting lid for future use.)
Place coconut in shallow bowl, if desired. Roll edge of each frosted cupcake in coconut.
Create snowmen by using 1 marshmallow for head and 1 for body. Draw eyes and mouth on marshmallow head using black decorator gel. Poke hole into marshmallow for nose, using toothpick; insert small piece of gumdrop into hole. Draw buttons onro marshmallow body using black decorator gel. Cut 2 (2x1/2-inch) strips of fruit leather for scarf; make “V” shape notch in 1 end of each strip.
Assemble snowmen by placing small amount of frosting on top of marshmallow body; place ends of 2 scarf pieces onto frosting. Place small amount of frosting onto scarf pieces; place marshmallow head on top. Create hat using decorator candies or gumdrops; attach to head using small amount of frosting.
Insert 2 toothpicks into bottom end of body, pushing through into head and leaving enough toothpick ends to insert into cupcake. Place snowmen on cupcakes, securing with toothpicks.
*Substitute 4 teaspoons vinegar or lemon juice and enough milk to equal 1 1/4 cups. Let stand 5 minutes.