Preheat the oven to 350 degrees. Line a muffin tin with white cupcake liners.
In a bowl, combine the chocolate cake mix, eggs, vegetable oil, and water. Stir well.
Fill each muffin well about 2/3 full and bake in the preheated oven for 15 to 20 minutes or until a toothpick inserted in the center of a cupcake comes out clean.
Remove the cupcakes from the oven and allow to cool completely.
Line a large baking sheet with parchment paper. Using a knife, carefully cut both sides both sides of the top of each sugar wafers to resemble the tip of a pencil.
In a microwaveable dish, place the pink candy melts and heat in the microwave at 30-second increments, stirring until melted.
Dip the bottom portion of each sugar wafer into the melted pink chocolate to resemble the pencil’s eraser. Allow excess chocolate to drip back into the bowl. Place the coated wafers on the parchment-lined baking sheet to set.
In a microwaveable dish, place the white candy melts and heat in the microwave at 30-second increments, stirring until melted.
Dip the top end of each sugar wafer into the melted white chocolate to resemble the pencil’s tip. Allow excess chocolate to drip back into the bowl. Place the coated wafers on the parchment-lined baking sheet to set.
Using the paring knife, cut the chocolate chips in half and place each of the halves on the white-coated tip of each sugar wafer to resemble a pencil.
Attach the frosting tip to the piping bag and fill with white frosting. Frost each cupcake in a circular motion.
Carefully place one pencil on each frosted cupcake and gently press to adhere.