I want to make some babies and teddy bears using some mouds and i wondered whether sugarpaste or fondant would be the best for making them with. I also would prefer something that set quite well so it makes it easier to handle and less likely to get damaged

AI would use 50/50 gumpaste and fondant. It will allow you more working time to decorate or mold your figure before it loses its pliability and dries. Good luck :)