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Cut out a rectangle of white fondant and a rectangle of colored fondant. Cut each rectangle diagonally. Take one part white and one part color and form a new rectangle. Set aside the extra fondant.
Cut the fondant into equal parts. The more strips you cut, the more shades you will get. Roll each strip into a ball and knead to mix in the colors.
Use the reserved white as the lightest shade and the reserved color as the darkest shade. You now have several pieces of fondant in varying shades for making ombre cut-out designs.