In advance, place coconut in plastic bag; add a small amount of icing color and knead until coconut is completely covered. Let dry on waxed paper.
Prepare icing according to package directions. Spatula ice inside of ears smooth with pink icing. Attach ears to roof. Let dry. Ice roof. Cut jelly rounds in half horizontally; position on roof in flower patterns attaching with dots of icing. Decorate mouth, eyebrows, whiskers and eyes with icing outlines. Attach jelly rounds for nose and pupils with dots of icing. Decorate around the base of hutch with green tinted coconut, jelly beans and sprinkle decorations. Position bunny decorations.