Prepare cupcakes per package directions. As a rule, cupcake liners should be filled about ⅔ full with batter to allow room to rise. Allow to cool on a wire rack.
Frost cupcakes.
Toast about half of the coconut flakes per package directions.
Melt white morsels per package directions.
Dip a marshmallow in the melted morsels, then roll in the untoasted coconut. Stick onto the frosted cupcake. Use the melted morsels as glue to add the cashew beak and mini chocolate chip eyes. Sprinkle toasted coconut around the marshmallow onto the frosting that is still exposed. Repeat this step for each cupcake. Enjoy!