Preheat oven 350°F. Prepare mega muffin pan with baking cups.
In large bowl, beat cake mix, milk, vegetable oil, eggs, and vanilla extract with electric mixer on low speed 30 seconds. Increase speed to medium and beat 2 minutes. Divide batter evenly between baking cups, filling about 1/2 full.
Bake 18-20 minutes or until toothpick inserted in center of cupcakes comes out clean. Rotate pan halfway through baking. Cool in pans on cooling grid 5 minutes. Remove cupcakes from pans; cool completely on cooling grid.
For icing, in large bowl, beat shortening, butter and vanilla extract with electric mixer until smooth. Gradually add sugar, 1 cup at a time, beating well after each addition. Add milk; beat on medium speed until light and fluffy.
Divided icing evenly into three separate bowls. Add pink Color Right to one bowl and mix until color is combined. Add blue Color Right to another bowl and mix until color is combined. Leave one bowl white.
Prepare 3 16-inch decorating bags with Color Swirl coupler pieces. Place decorating tip 1M on joined coupler pieces and twist on ring. Fill bags with pink, blue, and white icing. Pipe a wreath around the top of each cupcake, leaving the center empty. Divide cotton candy evenly among the cupcakes, placing in the center.