Heat oven to 350°F. In large bowl, beat sugar and butter with electric mixer on medium speed until blended. Beat in vanilla and egg. On low speed, beat in flour, baking soda and salt.
Shape dough into 1-inch balls. For each cookie, flatten ball into about 1 1/2-inch round with fingers; place 2 inches apart on ungreased cookie sheets. Lightly press 2 chocolate chips into upper third of each dough round for eyes.
Bake 9 to 11 minutes or until edges are light golden brown. Immediately press 1 cinnamon candy onto each cookie for nose. Remove from cookie sheets to cooling racks. Cool 15 minutes.
Place frosting in small resealable food-storage plastic bag. Seal bag; cut off small corner of bag. Squeeze bag to pipe frosting along bottom edge of cookie and above cinnamon candy for beard. Lightly sprinkle coconut over frosting; gently press into frosting.
Cut fruit snack into 2-inch-long pieces. Cut each piece diagonally in half to make 2 triangles. With small amount of frosting, attach fruit snack triangle on each cookie for hat. Fold top corner of each triangle over; pipe frosting "tassle" on pointed end of each "hat."