I think the giant sno-cone idea is great! Or you could even do sno-cone shaped cupcakes! You could also do a sheetcake or any other shape (square, round, stacked, etc) and make little different colored and flavored sno-cones from fondant or modeling chocolate(so they can eat them) to put all over the cake! The cake could also have a beautiful rainbow of colors to it - swirled, striped, curved, overlapping shapes, etc. HTH!
Thanks Renaejrk! I think you've just started my creative juices flowing again. Still tinkering around with ideas in my head, but it's coming together. It's hard to be creative when i'm supposed to be working! 
Thanks again!
If anyone has any other ideas I'm ALWAYS open to any suggestions. 
I think I would have to try and bake in the pointed ice cream cones and decorate them with wild bright colors of icing. (Just not sure how to get the pointed cones to remain upright in the oven) I use the flat bottom ones for cake cones.
Ok still thinking outloud on this....
what if you bake cupcakes and put them in the cones after they were done??
newtodecorating - I thought of that too. Any thoughts though on how to make the cake look like ice?! I don't want them to end up looking like ice cream cones instead, you know? I'm having a really hard time with this one! I think that's why she's asking me to do it!
Yeah you just sprinkle them ontop of your wet icing and they will stick. I know I have seen them in my grocery store. Probably cheaper though with a 50 % off at Michaels or A C Moore.
what about rice crispy balls, I think they would have the texture you're looking for.
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