Frost cupcakes; dip the tops in coarse sugar. Cut Fruit Roll-Ups into decorative strips; attach to cupcakes. Attach baking bits as desired using a small amount of frosting.
To form ornament stems, poke a hole in the top and bottom of gumdrops with a toothpick. Bend licorice into small loops and insert ends into bottoms of gumdrops; insert pretzels into tops. Press pretzel ends of stems into cupcakes.
Decorative cupcake liners can be found at fancyflours.com.