In advance: Make cookies. Prepare dough and tint a portion light copper; roll out. Cut smallest bear using plain dough and largest boy or girl using tinted dough. Bake and cool cookies.
Also: Tint 5 oz. fondant rose or blue. Roll out a small amount 1/8 in. thick. Cut a 1 x 3/4 in. wide triangle for bear's hat; let dry on cornstarch-dusted board. Reserve remaining fondant.
Decorate cookies using royal icing. Set cookies on waxed paper-covered board. For bear: Outline and pipe-in bear (pat smooth with finger dipped in cornstarch). Use tip 3 to pipe dot muzzle (pat smooth); outline and fill in bib. Use tip 2 to pipe dot eyes, outline mouth and bib outline, string and scallops. Use tip 2 to fill in ears, pipe number, attach hat and pipe pull-out dot fringe. For girl: Use tip 3 to outline and fill in shirt, jumper and collar. Use tip 2 to pipe facial features, curly hair, shirt collar and dots on skirt (pat smooth). Pipe tip 3 shoes (pat smooth) and bow in hair.
Ice cake smooth with buttercream. Pipe tip 21 shell bottom border. Roll out white and reserved tinted fondant 1/8 in. thick. Cut squares using smallest Cut-Out.
Attach to edge of cake top with dots of icing, alternating colors and trimming as needed to fit curves. Cut name using alphabet cutters; position on cake. Position cookies.