Preheat the oven to 350°F. In a mixing bowl, combine the chocolate cake mix, water, egg, and vegetable oil until smooth. Divide the batter evenly among four lined cupcake cups.

Bake the cupcakes for 15 to 18 minutes until a toothpick comes out clean. Let them cool completely on a wire rack.

While the cupcakes cool, melt the chocolate chips in a microwave-safe bowl in 20-second bursts, stirring between each until smooth. Dip the outside of each sugar cone into the melted chocolate and set them on parchment paper to harden.

Spread a layer of chocolate frosting over each cooled cupcake. Place one dipped sugar cone point-up in the center of each cupcake to form the hat shape.

Set one chocolate kiss at the tip of each cone to finish the hat.