Melt chocolate as directed on package. Dip 20 marshmallows, 1 at a time, in chocolate, turning to evenly coat each marshmallow. Gently shake off excess chocolate.
Place marshmallows, in single layer, on sheets of waxed paper. Reserve remaining melted chocolate for decorating. (NOTE: If decorating coated marshmallows with coconut hair, place 1/2 cup coconut in small resealable plastic bag.
Add 2 drops each green and yellow food coloring; seal bag. Shake to evenly tint coconut. Arrange on tops of coated marshmallows. If desired, pinch coconut into a mohawk cut before placing on marshmallows.)
Let marshmallows stand at room temperature 2 hours or until chocolate is firm.
Cut each of the remaining marshmallows crosswise into 4 pieces with clean kitchen shears.
Cut v-shaped notch out of each piece for the shoes. Dip cut-sides in colored sugar. Attach 1 notched marshmallow to bottom of each chocolate-covered marshmallow with a dab of the remaining melted chocolate.
Cut pretzels into 1/4-inch lengths. Insert 1 pretzel piece into each cereal ring; insert 2 pretzels into opposite side of each marshmallow, securing each with a dab of melted chocolate. For eyes, nose, scars and other hair styles: Decorate marshmallows with remaining ingredients as desired.
