Step 1

In separate microwave-safe bowls, melt the red and white candy melts according to the product package instructions. (The amount you need to melt will vary depending upon how many cookies you want to make, but half of each package is enough to make approximately one dozen cookies.)

Step 2

Dip the top of each Oreo into the red candy coating. Place on wax paper to cool until coating is set. (To speed hardening, place in the refrigerator until firm, about 10 minutes.)

Step 3

When the red coating is set, dip the lower half of each cookie into the white candy coating. Place the cookies onto wax paper, but do not allow the white coating to set. Apply a border of white frosting over the edge where the red candy coating and the cookie meet, dabbing the icing to mimic the look of the fur lining of Santa's hat. While the white candy coating is still wet, affix an M&M nose onto the top center edge of the dipped white section. Create two eyes with the black gel and affix a marshmallow on one side of the frosting border to form a pom-pom for Santa's hat.