To make bow loops (4 for each bow), roll fondant 1/8 in. thick and cut strips 3 in. long x 1/2 in. wide. Brush both sides with water and coat with corresponding color sugars. Pinch open ends of loops together and lay on side to dry. To make center loop, repeat same process as bow loops but cut 1 in. long x 1/2 in. wide. Let dry several hours.
To make candy cupcake shells, place baking cups in standard muffin pan. Add a small amount of melted candy inside bottom of cup and use pastry brush to completely coat inside of cup; let set in refrigerate and repeat process for second coat; let set.
To make candy lids, position medium round cutter from set on cookies sheet and fill 1/4 in. deep with melted candy; refrigerate until set and unmold.
Attach loops to candy lids with melted candy. Fill shells with red and green candy coated chocolates.