Place a handful of one color candy melts into a resealable plastic bag. Do not seal. Microwave on 50% power for 30 seconds. Knead and return to the microwave. In 30 second increments, continue kneading until smooth and completely melted. Seal the bag, removing the air and snip the corner of the bag with scissors.

Pipe the melted candy into the mermaid tail mold. Gently tap on the surface to remove air bubbles and level the melted candy. Refrigerate for 15 minutes or until set. Remove candy from mold and repeat with the second color of melts until you have the desired number of tails. Set aside.

Place crumbled graham crackers into a bowl. Line a cutting board or baking sheet with wax paper and set aside.

Tint frosting with blue coloring. Spoon half of the frosting into a microwave safe bowl and microwave for 15 seconds or until icing is thin. Press a fork into a donut hole and dip into the melted frosting. Dip bottom of donut hole into graham crackers and place onto the wax paper. Sprinkle with mermaid sprinkles. Repeat until you have the desired number of donut holes covered.

Place remaining frosting into a piping bag fitted with a 1M tip. Pipe onto the top of the donut holes with a large dollop.

To serve, sprinkle remaining graham crackers onto a plate and top with donut holes. Serve immediately or refrigerate until ready to serve.