Preheat oven to 350°. Combine first 3 ingredients in large bowl; blend well. Stir in ½ cup cranberry sauce. Do not over mix; batter will be lumpy. Place paper baking cups in muffin pan; divide batter into 16 paper cups.
Bake 30-33 minutes or until toothpick inserted in center comes out clean. Cool completely.
Stir 1/3 cup cranberry sauce into frosting. Frost each cupcake and garnish with dried cranberries, sliced almonds or toasted coconut if desired.