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Using a serrated knife, trim the edges and the top off the cake.
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Cut the cake into four rounds using the 4-inch round cookie cutter.
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Place one of the cake rounds, cut side up, on a cake board. Pipe some frosting onto the top and spread with an off-set spatula. Place a second cake round, cut side down, and pipe another layer of frosting. Place the third cake round, cut side up, pipe a layer of frosting, and then place the last cake round, cut side down on top of it. Pipe frosting on the top of the cake and around the sides of the cake. Using the off-set spatula, spread the frosting into a smooth layer.
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Place the cake in the refrigerator for 15 minutes or until frosting is set.
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Meanwhile, prepare the fondant. Take a small amount of the white fondant and add a few drops of black gel food coloring. Mix together using gloved hands. Shape into a flame and attach to a toothpick. Set aside.
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Place a couple drops of brown gel food coloring onto the fondant and mix together using your hands.
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On a large surface, lightly dusted with powdered sugar, roll out the fondant to about ¼ inch thickness, making sure to keep it in a round shape.
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Remove cake from the refrigerator and transfer to a cake stand or overturned plate. Roll fondant onto the rolling pin to transfer it to the cake.
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Drape fondant over the cake and use your hands to smooth the fondant down the sides of the cake, gently pulling the folds out and down.
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Smooth the top and sides of the cake. Since it’s meant to look like an old candle, it’s okay if there are some bumps or weird edges. If desired, leave the excess fondant hanging off the bottom of the cake to look like melted wax. Otherwise, cut the excess fondant off the cake using a sharp knife.
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Gently press desired stencils onto the cake. Dip clean paintbrush into red gel food coloring and paint the stencils onto the cake.
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Insert the toothpick with the fondant flame into the center of the cake.