Make your cupcakes according to the box directions if you are using a boxed cake mix to make them and then let them cool.
Get a piece of wax paper large enough to have multiple hats on it and lay it flat on the counter.
Melt your red melting candy and then fill an icing bag with the melted red candymelts. Draw the hat shape and then fill it in for as many cupcakes as you have made. Set them aside and let the candy cool and reharden.
Melt the white chocolate melts in 30 seconds intervals in the microwave. Once melted put in an icing bag and make little white circles of white chocolate you can use any of the circle tips or if you are using the toss away ones you can skip using an icing piece and just cut the bottom so its only a small hole to pipe with. You will need to make 24 little white circles. then make 12 oval shapes with the white chocolate and take a chocolate chip and place it at the top with the flat side up (this is the mouth area and nose area and the chocolate chip is his nose). Let the chocolate reharden.
Using the icing tip number 233 and pipe the icing on top of your cupcakes to look like bear fur, if you are missing spots don't worry about it because you just want a thin layer of icing here and we will be doing more with icing at the end. Make sure you have about 1/2 of the icing left over after you do your first round of icing.
Start by placing the white chocolate oval in the middle towards the bottom of the cupcake, then place the white circles above the mouth/nose piece, then take your red hat and put it above that. Do it for each cupcake. Then get your icing bag again with the brown icing and add more fur around the eyes, mouth/nose piece and filling in any spots that aren't "furry". Then using black writing icing tube draw the mouth and put black dots on the eye circles.