Heat oven to 350°F. Grease and flour one 8- or 9-inch round cake pan; line 12 muffin cups with paper baking cups. In large bowl, combine all cake ingredients; beat at low speed until moistened. Beat 2 minutes at medium speed. Fill paper-lined muffin cups 2/3 full; pour remaining batter into greased and floured cake pan. Place cake pan in oven first, then muffin tin.
Bake at 350°F. until toothpick inserted in center comes out clean. Bake cupcakes 20 to 30 minutes; bake cake in pan for 35 to 40 minutes. Cool cupcakes and cake in pan for 15 minutes. Remove cupcakes and cake from pans; place on wire rack. Cool 30 minutes or until completely cooled.
Cut cake in half crosswise; cut each half into 1/3 and 2/3 pieces. Place cake pieces on platter or foil-covered cardboard to form butterfly.
Add purple icing color to frosting to make desired purple color; blend well. Frost cupcakes and cake pieces. Cut licorice twist in half; place side by side between cake pieces for body. Place jelly bean above licorice for head. Bend string licorice to form antennae; insert into cake near jelly bean. Decorate "wings" and cupcakes with decorator sugar and decorating icing as desired.