PREPARE cake batter and bake in two 9-inch round baking pans as directed on package. Cool 10 min.; remove to wire racks. Cool completely.
CUT cakes crosswise in half. Spread two of the cake halves with jam; top with remaining two cake halves to form two stacks. To assemble, arrange cookies in center of large board or tray with edges slightly overlapping to form the "butterfly's body," securing cookies to each other with small amount of the whipped topping. Arrange cake stacks around body to resemble the butterfly's wings.
TINT remaining whipped topping with food coloring as desired. Spread onto cakes. Decorate with whipped topping, cereal, candies and cookies. Store in refrigerator.