PREHEAT oven to 350° F. Grease and flour two 9 x 5-inch loaf pans.
MIX 1 package cake mix, 1 cup water, 1/3 cup oil and 3 eggs in large mixer bowl; beat at low speed until moistened. Beat for 2 minutes at medium speed. Pour batter into 1 prepared pan. Repeat with remaining cake ingredients and second prepared pan.
BAKE cakes for 50 to 60 minutes or until wooden pick inserted in center comes out clean. Cool cakes in pans on wire racks for 15 minutes. Remove cakes from pans; place on wire racks to cool completely.
BEAT cream cheese in large mixer bowl at medium speed until smooth. Add sugar and vanilla extract until mixture is smooth. With mixer on low speed, add 1 cup cream. Scrape sides and bottom of bowl with rubber spatula. Increase speed to high; gradually add remaining cream and whip until stiff peaks form.
MIX 2 drops blue food coloring with 1/2 cup frosting. Mix 8 drops red food coloring with remaining frosting to create a pink color; refrigerate until ready to use.
COVER 20 x 12-inch piece of cardboard with foil. Add blue frosting to foil; spread with spatula to resemble "water".
TRIM top of each loaf cake until leveled and cakes are rectangular (discard trimmings). For main section of castle, place 1 loaf cake on the blue "water". Cut remaining loaf cake in half vertically and stand on end of each side of main section. Attach each end cake piece using 1 tablespoon pink frosting. Frost entire castle with pink frosting.
LINE main section of castle with Chewy SweeTarts. Cut White Crunch in half; use as gate to the front of the castle. Use chocolate Crunch as the bridge over the "water".
MELT morsels according to package directions. Brush entire ice cream cones with chocolate; refrigerate for 10 minutes or until set.
INSERT wooden pick into the ends of four assorted Gummy Bugs; top chocolate-covered cones with one flagged wooden pick. Gently press cones on each tower of castle. Line towers with Tart N Tinys. Insert remaining two flags in top of each end of main section of castle.
PRESS Crunch Miniatures into sides of castle to create windows.
NOTE: Cake can be made the previous day. Decorate castle up to 2 hours before serving to prevent candy from softening in the refrigerator.