Turn cookies so pointed ends are up. Using desired tip, pipe frosting on upper 1/3 of cookie. Place 1 marshmallow half at tip of each cookie for hat; sprinkle with red sugar. Using small dots of frosting, attach 2 blue candies on each cookie for eyes. Pipe small frosting mustache below eyes; place red candy in center for mouth. Pipe frosting on lower 1/3 of each cookie for beard. Store in single layer, loosely covered.