So, having slept on it I started again the following day by mixing a 50-50 mixture of mmf and gum paste. This time the teddy kept his shape! OK, so I made his belly a bit too big, but no matter, he still definitely looked like a teddy. Once teddy had dried completely, I covered him with royal icing to make him look fuzzy.
I did the blanket by laying a waffle-weave dishtowel over the rolled out fondant and gently rolling over the towel to imprint the weave. Then I took a pairing knife and hand-cut all the tassles. I was surprised it worked so well and was very pleased with the end result.
I just had to include this photo because the way the colours arranged themselves is so cool! My kitchen elves made two cakes for the teddy cake; one in blue, green and purple and the other in red, orange and yellow. Then I torted both cakes and layered them alternately. the edge looks burnt, but it is in fact the way the dark purple baked.