Next, roll out the blue fondant to 1/4th inch thickness. Using the circle stencil, cut out the circles with a sharp knife. Store any leftover fondant in a ziptop plastic bag so it won't dry out.
Roll out the yellow fondant next, and use the diamond-shaped stencil to cut out the yellow diamonds. Store leftover fondant in a ziptop plastic bag.
Next, trace the S-symbol onto the red Sugar Sheet with a black edible ink marker. (Edible ink markers can be found at most craft stores.) Use a pair of sharp scissors to cut out the shapes, and then peel the plastic off the back.
Dampen the center of a blue circle with water and place a yellow diamond on top. Lightly coat the yellow diamond with water and lay the red S on top of that. Repeat this process with the rest of your fondant shapes, and let the cupcake toppers dry completely before adding them to your cupcakes.