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 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.