The Punches Challenge in the Moxie Fab World is what the following card is for.
The cupcake is not a punched out and then adhered shape, but it is the left over punched out shape that stays in the paper that is left behind after you punch out something. The circles under the bakers twine are actually punched out pieces, but the cupcake is just the punched shape that is left in the cardstock after the shape comes out. I just adhered a piece of patterned paper behind it. Like I said, this card is for The Punches Challenge in the Moxie Fab World
You should play along, the deadline is next week.
Here is the card: (and sorry the picture is so crooked)