Prepare the cake mix and bake the cake in two 8 inch rounds according to package directions. Cool completely.
Cut a circle out of the center of one of the layers, leaving a ring that measures 1 1/2 inches from the outer to the inner edge. Place the uncut layer on a serving platter and frost the top. Place the ring layer on top of the frosted layer, and frost the sides and top of the basket. Decorate the sides and top by pressing candy pieces into the frosting.
To tint the coconut, combine water and green food coloring in a medium bowl. Stir in coconut with a fork until evenly tinted. Place green coconut grass in center of cake basket.
To make a handle, cut a piece of aluminum foil 8x16 inches. Fold in half lengthwise 4 times. Wrap with ribbon, securing the ends with tape. Insert ends of the handle into the cake top. Fill basket with Easter candy and goodies, if desired.