This tiny treat bag would probably not hold even one M&M, but it would look very cute on cupcakes or petits fours (in any color you like, of course). You'll need stiff consistency royal icing, round tips #8 and #5, a glue stick, a flower nail, a Styrofoam block to rest the nail in, parchment paper squares, food-safe markers like AmeriColor Gourmet Writers, and a dusting pouch filled with a 50/50 mix of powdered sugar and cornstarch. Start by sticking a parchment square to the flower nail with a dab from the glue stick. Alternately, you can pipe the icing on the squares directly on your countertop.
Pipe the handles with the #5 tip and allow them to dry. Always pipe more than you need to allow for breakage. These are actually leftover from when I made royal icing cauldrons.
When the handles are firm enough to, um, handle, glue one on the bag with two dots of icing piped from the #5 tip.