Divide fondant in half; tint ½ red and ½ blue. Roll fondant 1/8 in. thick and cut the following stars: One large blue and one medium red star with cookie cutters; five each red and blue using large star Cut-Out; five each red and blue using medium star Cut-Out. Lightly brush stars with damp brush; sprinkle with corresponding color sugar. Let dry on waxed paper covered board dusted with cornstarch.
Bake your favorite 2-layer cake recipe or mix in star pan following recipe instructions. Cool in pan on wire rack 10 minutes; remove from pan and cool completely. Arrange cake on foil-wrapped cake board. Ice cake smooth with buttercream icing. Pipe tip 21 star bottom border.
Attach small Cut-Out stars to end of lollipop sticks and medium Cut-Out stars to middle of lollipop sticks with royal icing or thinned fondant adhesive. Pipe a tip 21 mound of buttercream in center of cake top. Insert 5 of the sticks into mound; insert remaining sticks between sticks already placed. Position largest star in center of cake; attach next largest star on top using buttercream icing.