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Make clothes. Roll out fondant 1/16 in. thick. Use cookie as guide to cut out hat. Attach. Use edge of spatula to imprint vertical lines on hat with crisscross pattern in between lines. Cut ¼ in. wide strip of fondant and attach for hatband. Repeat to add crisscross pattern on hatband. Roll a tiny ball of fondant and attach to top of hat.
Make scarf: Cut fondant into three strips 5/8 in. wide. Attach one strip around neck; attach remaining two strips for ends of scarf. Use edge of spatula to imprint fringe in ends of scarf. Use red icing to outline and fill in shoes. Pat smooth. Attach candy for shoelaces. Use white icing to pipe dots at shoelace centers.
Make facial features. Use white icing to outline eyebrows, pipe dot eyes and pipe swirl beard. Attach candy for nose.