Bake your favorite 2 layer cake recipe in 10 in. round baking pans. Cool completely. Stack cooled layers with buttercream or other favorite filling on foil covered cake drum. Prepare for fondant by lightly icing with buttercream. Roll 24 oz. white rolled fondant out to 1/4 in thick.; cover cake.
Tint fondant as follows: 14 oz. red, 7 oz. yellow, 7 oz. blue, 7 oz. green, 4 oz. light orange, 8 oz. dark orange. Roll out light and dark orange fondant 1/8 in. thick. Cut 16 1 in. x 4 in. (or height of cake) strips; attach to sides of cake with damp brush. Roll out yellow fondant 1/8 in. thick; cut out yellow stars. Attach to sides of cake with damp brush; reserve 8 stars for carousel top. Roll 1 in. balls from each color fondant; attach at bottom border of cake with piping gel or royal icing. Add tip 3 matching color icing outline swirl on each fondant ball.
Roll out yellow, blue, green and red fondant 1/16 in. thick. Cut ovals for saddles; attach to horses with piping gel or royal icing. Cut matching 1/8 in. strips to use as bridles, reins, and decorate pillars. Assemble horse and pillars; insert in cake following Carousel Set instructions
Roll orange and yellow fondant 1/8 in. thick; cut triangles. Brush with piping gel and attach to sides of the carousel top. Cut 1/8 in. wide red strips; attach between orange and yellow triangles. Roll red and yellow fondant 1/8 in. thick; cut red circles and yellow stars; attach to carousel top. Roll one 2-in. red fondant ball; attach to carousel top. Attach top to pillars in cake. Attach mini candy-coated chocolates to top edge of carousel with royal icing.