For the eyes I took kitchen shears and cut large marshmallows into thirds. (I originally looked for Necco wafers for this step but couldn't find any, anywhere.)
...so I picked them all out and gave the rest of the bag to the hubby.
You also need black decorating gel, black licorice and red sprinkles. And red food coloring.
Sierra waiting patiently for me to drop something. She eats licorice, BTW.
Take white icing and add enough red food coloring to get a good red icing. I pretty much killed an entire bottle of food coloring and still only got a really dark pink.
After icing the cupcakes heavily, add enough red sprinkles to finish the red coloring and give Elmo his furry look.
Then use your black decorator gel to make the pupils on the eyes. I started using the gel for the mouth as well, b/c I couldn't get the licorice to "smile" enough. (Elmo looked kind of perturbed.) However, I started running out of gel and was forced to use the licorice. With Robert's help, it works best if cut into a thin, thin strip and curled around your finger for a moment before placing on the cupcake.