A frozen treat dispenser (11) dispenses a snow cone and/or a slushy, and has at least an ice storage bin (14) for storing ice (10), a cup de-nesting mechanism (49) to separate a cup from a stack having a plurality of cups, an ice grinder (21) to grind ice from the ice storage bin to produce snow (82), a flavor dispenser (25), a cup transport mechanism (23) to move the cup to a first position (40A) whereby the ice grinder can at least partially fill the cup with the snow and to a second position (40B) whereby the flavor dispenser can dispense at least one flavor onto the snow in the cup, and a processor (152) to control the operation of at least one of the cup de-nesting mechanism, the ice grinder, the flavor dispenser, the indexer, or a combination thereof.