Decorating a cake with fondant can be fun. I would recommend to buy the ready made fondant, it comes in many colors or you can color the white fondant with food coloring.
Choose a somewhat firm cake to cover, this will make it easier to press the fondant around the cake to smooth it out.
This is a pictorial view of how I created my latest fondant decorated cake.
For more details of how to make the bow, check out this post – fondant bow.
Icing recipe for tracing and gluing bow together:
1 cup icing sugar
1/2 teaspoon meringue powder
a few drops water
Must be thick like peanut butter for gluing bow.
Thin it down slightly to trace with. Usually adding food coloring will also thin it down.