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BEAT pudding mix and milk in medium bowl with whisk 2 min. Stir in COOL WHIP.
CUT tops off cupcakes; cut each top crosswise in half for the butterfly's wings. Set aside. Spoon heaping tablespoonful of the pudding mixture onto bottom half of each cupcake; top with sprinkles.
INSERT cut sides of 2 wings into each cupcake, raising outside edges slightly. Decorate with gels as desired. Insert 2 licorice pieces into each for the antennae. Keep refrigerated.