Using a serrated knife, cut each Nutter Butter cookie in half diagonally across the short-middle using a sawing motion. Use a pastry brush to remove any loose crumbs.
Melt candy coating according to package directions. If candy melts are too thick, add 1 tablespoon of shortening or coconut oil and stir to combine. Do not add water or any water-based product (such as food coloring) or the candy melts will seize and not be usable.
Prepare a baking sheet or flat surface with waxed paper.
To create the heart-shaped Nutter Butters, you have two options. 1) Use the candy melts as a glue to attach two pieces of Nutter Butter cookie together with one cookie flipped to create a heart shape when pressed together. Allow cookie to set completely before covering with additional candy melts. 2) Dip each half cookie in candy melts and allow excess to drip back into the bowl. Press two coated cookie pieces together with one cookie flipped to create a heart shape. Place on waxed paper.
Immediately after coating the cookies, sprinkle with pink sugar sprinkles. Allow to dry completely.
To create the cupcakes, decorate cupcakes with icing and drop sprinkles over the icing. Gently press one Nutter Butter heart into the icing of each cupcake.
For best results, refrigerate until ready to serve.