Fill a pastry bag fitted with a large round tip with the white frosting and frost the cupcakes. Sprinkle with the white nonpareils.
Melt the red candy wafers and coconut oil in a small heatproof bowl in the microwave, 30 seconds.
Trim an inch off the pointed side of each ice cream sugar cone with a serrated knife. Coat the ice cream cones with the melted red candy and sprinkle with the red sanding sugar. Top with a white gummy candy. Chill in the refrigerator until set, about 5 minutes.
Place the Santa hat on top of the cupcake and serve.