Prepare cake batter and bake as directed on package for cupcakes. Cool completely. Place 1/3 cup of the whipped topping in large resealable plastic bag. Add marshmallows; seal bag. Shake until marshmallows are evenly coated. Place decorating sugar in shallow pan. Add marshmallows; toss lightly until evenly coated with sugar. Place in single layer on clean tray. Decorate as desired with small pieces of the licorice.