The way that I would do it to achieve this look is to cut out little strips of fondant ( maybe about 1" width X the length of the cake) and apply it all around the border of the cake. See the drawing I have attached and check out the way the fondant would be applied. The shaded part would be the fondant. Cut the letters out of fondant with a cookie cutter then place on the cake. Then cover the whole cake with fondant. Hope that helps!
3/19/09 at 1:17pm