PREPARE cookies as directed on package. Cool completely.
DIVIDE frosting into smaller bowls. Tint frosting to desired shades with food coloring.
TO MAKE BONNET BANDS, gently stretch and mold each piece of Laffy Taffy into a 6” x 1” rectangle. A rolling pin can be used to flatten if easier. With knife or kitchen scissors, cut into 1/4-inch bands. Keep covered to keep bands from drying out.
SPREAD frosting over cookies. Place a half marshmallow in the center of each frosted cookie. Spread tops and side of marshmallows with frosting, if desired. Wrap Laffy Taffy band around base of hats; gently pinch or twist band close to hat base. Sprinkle bonnets with assorted toppings, sprinkles and sugars.
NOTE: WONKA® NERDS® Rope cut into 4-inch pieces can also be used for the hat bands.