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Bake and cool cupcakes. Ice smooth with spatula and white buttercream. Shape a mound of icing on top of cupcake to resemble a body.
Tint 1/2 oz. of fondant light yellow (for each cupcake). Roll out fondant 1/8 in. thick. Use second smallest circle cookie cutter to cut blanket. Cut 1/2 in. off the top of the circle and round edges.
Use straight-edge wheel of the Cutter/Embosser to make crisscross lines, 1/2 in. apart. Slightly fold over the top of fondant blanket.
Place blanket on top of cupcake and insert Bear Topper.