TINT coconut with food coloring. Remove paper from cupcakes; frost tops and sides of cupcakes with whipped topping. Sprinkle coconut evenly over whipped topping; press gently into whipped topping to secure.
SPREAD cookie crumbs evenly onto 2 large serving platters to resemble dirt. Arrange 12 cupcakes on each platter to resemble caterpillar.
DECORATE cupcakes with remaining ingredients as desired.