What is fondant you ask...
Fondant is like a thick clay made out of sugar. It's used to cover cakes and to mold characters. So if you watch all of those cake shows and competitions then you'll know what i'm talking about. I found a cool little video showing you all how to roll and apply fondant to your cakes!
Video by BakingBuyer1
Here's another video showing some of the things you can do with fondant and gumpaste.
Video by Laurapoopie
You can purchase fondant at any cake supply store or online.
I use Wiltons line of fondant called "Satin Ice". You can make fondant yourself but trust me when I say it's less hassle to buy it :/ But if you are feeling adventurous and have some time to kill, here's a great fondant recipe.
~ Love in a Cupake~