Heat oven to 350°F. Line muffin cups with paper baking cups. Prepare cake mix according to package directions using water, oil and eggs. Divide evenly into prepared muffin cups.

Bake 19 to 23 minutes or until toothpick inserted in center comes out clean. Cool 10 minutes. Remove to wire rack to cool completely.

Microwave white frosting in medium microwave-safe bowl on HIGH 10 seconds at a time, stirring until melted and smooth. Dip top of cupcakes into frosting, turning to coat, allowing excess to drip off. Cool 10 minutes. Sprinkle immediately with candy bits from frosting.

Fit two decorating bags with small round tips. Fill one bag with green frosting and one with red frosting. Pipe red and green frostings to make dots, zigzags or striped designs. Place peanut butter cup upside down on top of cupcake to form ornament top. Insert pretzel piece to form hook.