Sorry haven't been around much last week to comment on all my friends post. I've not been feeling all that great.
Start with rolled fondant, but don't roll it out too much because you will be rolling it out later. Next cut out your favourite shapes, colours and add on top of the fondant. I made the mistake of working too slow and in the next picture you will see some of the pieces shifting (due to the fondant drying up). So in order to avoid that, make sure you had some shortening or water ( use very little, dry brush).
Fondant Cupcake Tutorial and you'll have step by step instruction on covering cupcakes with fondant.
Have a great week :)