HEAT oven to 350°F.
PREPARE cake batter and bake as directed on package for 2 (9-inch) round cake layers, blending dry pudding mix into batter before pouring into prepared pans. Cool cakes in pans 10 min.; remove to wire racks. Cool completely.
BEAT cream cheese and powdered sugar in large bowl with mixer until well blended. Gently stir in COOL WHIP. Stack cake layers on plate, spreading 1/3 of the cream cheese mixture between layers. Frost top and side of cake with remaining cream cheese mixture.
POKE 2 small holes in bottom of ice cream cone; insert ends of licorice into holes, leaving small loop at top. Place next to cake to resemble ornament hanger. Decorate cake with decorating gel and colored sugar as desired. Keep refrigerated.