Cover cupcake with vanilla frosting. Add a few dots of blue decorator gel, then use a butter knife to swirl it into the frosting.
Press 7-8 gummy worms around the edges, letting them hang over the sides, make sure to leave a space in the center for the head.
Use white and black frosting to make eyes and a mouth on the gumdrop, then press the gumdrop into center of the cupcake.
Sprinkle with white sprinkles/nonpareils.
Notes
If you don't have black food coloring or black frosting you can always use chocolate frosting for the eyes. I already had a tube of black frosting and put a Wilton #2 tip on it, which saved time and allowed me to make the eyes a lot quicker and easier. If you don't have any Wilton tips you can always put the frosting in a zip-lock bag and cut the tip.