PLACE frosting in medium microwave-safe bowl. Microwave on HIGH 30 seconds. Stir until smooth. Dip top third of 1 doughnut into frosting to coat, allowing excess frosting to drip off doughnut. Sprinkle lightly with pink sugar crystals from frosting. Place on flat rectangular platter, frosting side up. Repeat with 4 additional doughnuts, arranging the 5 doughnuts in a straight row on platter.
REPEAT with 4 more doughnuts, arranging on top of first row, staggering placement between doughnuts. If frosting thickens, microwave additional 5 to 10 seconds until desired consistency when stirred. Repeat with remaining doughnuts, arranging in three additional rows of 3, 2 and 1 doughnuts each.
MICROWAVE remaining frosting on HIGH 10 seconds. Stir. Drizzle lightly over doughnut pyramid. Sprinkle evenly with remaining pink sugar crystals. Insert candles or decorative picks into pyramid, if desired.