To color coconut, separate coconut into 3 separate bowls. Working with one bowl at a time, add a few drops of liquid food coloring (one bowl yellow, another orange, another red) and stir and smash with a fork until color is distributed.
Place coconut on a baking sheet and bake at 350 degrees for about 5-8 minutes, stirring once, until lightly toasted. Cool completely.
Frost sugar cookies with chocolate frosting and sprinkle crushed chocolate cookies on top. Line the outside edge of cookie with rock candy.
Sprinkle cooled coconut in the middle and prop up 3-4 pretzel rods (trim to be shorter if necessary.)