Preheat oven to 350 degrees F.

Line two 12-cup cupcake tins with paper liners and set aside.

Mix sugar and butter in a mixer until very creamy, scraping sides as needed, 1 to 2 minutes. Add the eggs and yolks, one at a time. Add the milk, water, and vanilla and blend.

In separate bowl mix flour, baking powder, and salt in a medium bowl.

Add the dry ingredients, in 3 batches to the wet mixture.

Evenly pour the batter into the prepared cups, filling them 3/4 of the way full.

Bake until the cakes are just firm and spring back when gently pressed 18 to 25 minutes.

Allow to cool.

In a small bowl, beat butter, cream cheese and vanilla until smooth.

Gradually beat in confectioners' sugar; spread over cupcakes.

Combine water and food coloring in a large resealable plastic bag; add coconut.

Seal bag and shake to tint.

Sprinkle over cupcakes.

Using a metal or wooden skewer, poke a hole in the top on opposite sides of each cupcake. Cut licorice into 6-in. strips for handles; insert each end into a hole.

Decorate with jelly beans.