Trim one cake to create bottom part of lamb's body (rounded head and end with indent for neck). Trim the other cake to create head and rest of body (rounded end with indent for neck and head shaped so nose and ears stick out). Assemble cake layers with top layer sticking farther out than bottom and with frosting between. Frost top of cupcake with frosting and place on cake upside down for top of head. Frost entire cake with frosting.
Cover body and top of head with mini marshmallows. Cut the large marshmallow in half lengthwise on the diagonal. Dip sticky cut sides in pink crystal sugar. Press onto head for ears. Press chocolate chips into face for eyes and nose. Use licorice for mouth.
To make bell, shape taffy into bell shape and attach green candy. For collar, wrap licorice around neck of lamb, inserting ends into frosting. Attach bell to collar using frosting.