Open the package and cut each cookie in half. Using your hands, roll each half into a ball. Put the palls on an ungreased cookie sheet, 1" apart from each other.
Bake the sugar cookies at 350 degrees, for 10-12 minutes, or until set and golden brown. Let the cookies rest 1-2 minutes, and then remove them to a wire rack to finish cooling completely.
To the bowl of a stand mixer, add the marshmallow creme & butter. Using the paddle attachment, beat them together until smooth and creamy.
Slowly, a little bit at a time, beat in the powdered sugar until it's completely incorporated and the frosting's fluffy. Add the food coloring, mixing again until it's mixed throughout and the frosting's a uniform red.
Spread the edges of a gallon sized ziplock bag out over the lips of a small-medium mixing bowl (whichever it fits over). Add the frosting to the center of the bag. Pull the edges up, twist closed over the frosting, and use scissors to cut a small whole in one of the bottom corners.
Pipe the frosting into a wide circle, and then pipe in and up into a hat shape. Top each with a mini marshmallow. Immediately (so the frosting isn't dry & it sticks) sprinkle the sprinkles around the bottom of the frosted cookies to resemble a Santa hat.