Prepare and bake cake batter according to package directions for cupcakes; cool in pans 10 minutes.
Pierce cupcake tops with fork. In a small bowl, add boiling water to gelatin; stir 2 minutes or until completely dissolved. Spoon over cup cakes. Refrigerate 30 minutes. Remove cupcakes from pans. Tint whipped topping with food color if desired; frost cupcakes.
For BUNNYMALLOW decorations, slice each marshmallow into 5 rounds crosswise. Press one cut side of each slice into colored sugar. Arrange slices on cupcakes to resemble flower petals. Refrigerate until serving.