In advance: Prepare fondant pieces. Mix 2 teaspoons Gum-Tex into 24 oz. of fondant. Tint 1 1/4 in. ball skin tone, 1 in. ball red, 3/4 in. ball blue, 1 1/2 in. ball green; reserve remaining white. Roll out 1/8 in. thick. Use pattern to cut crown. For hat use pattern to cut white base. Cut red and blue strips about 1/8 in. wide for stripes; attach with damp brush. Let all pieces dry on cornstarch-dusted surface. Attach lollipop stick to back of hats with thinned fondant adhesive.
Bake and cool cupcakes in silicone cups supported by cookie sheet. Pipe tip 2A head, building up for dimension; round with spatula. For arms, cut lollipop sticks to 3 in. long. Insert 1 1/2 in. deep through tip 21 into bag of icing; squeeze as you pull out stick. For hands, divide skin tone fondant into 4ths. Roll each piece into a ball and flatten slightly. Shape hand and cut slits for fingers. Clean icing off 1/2 in. of iced arm; attach hand. Insert arms in cupcake. Use tip 3 to pipe dot or outline eyes; outline and pipe in mouths. Use tip 7 to pipe dot noses and tip 4 to pipe outline or pull-out hair. Insert flag picks; curl fingers around. Attach crown; insert hat.
Combine Red-Red with Christmas Red for red shown. Combine Lemon Yellow with Golden Yellow for yellow shown. Combine Brown with Red-Red for brown shown.