In a cocktail shaker, combine the tequila, lime juice, and orange liqueur. Shake vigorously.
Add cream soda and gently stir to combine.
Fill each serving glass about three-quarters full with cotton candy.
Slowly pour the margarita mixture over the cotton candy until the glass is about halfway full.
Add ice and stir until the cotton candy dissolves.
Serve immediately with a fun straw or festive garnish.
Notes
Tequila Tip: Silver tequila keeps the flavor clean and lets the cotton candy shine, but feel free to experiment with a smoky mezcal or reposado for a twist.
Cotton Candy Choices: Pink and blue cotton candy give that classic carnival look, but feel free to try flavors like grape or watermelon for a fun surprise.
Soda: Any high-quality cream soda works. Just make sure it's not too flat.
Make it a Mocktail: Skip the tequila and orange liqueur. Sub in orange juice and a splash of lemon-lime soda for a kid-friendly or non-alcoholic version.
Serving Tip: This drink is best made right before serving, so the cotton candy stays magical and doesn’t melt too soon.