Hello all!
Do you roll your fondant, let rest then cut out or do you roll, cut out then let rest? How long do you let it rest so that the cutout doesn't lose its shape but is still pliable to add to round cakes or to bend on sides and tops of cakes? Do you roll your fondant with ps, cs or crisco? I made fondant cutouts in advance (trying to work on my time management) and covered in plastic wrap and used the next day' They were kind of hard and some cracked when trying to apply (diamonds) to sides of cakes and some of them didn't lay flat. Please help! When I look at cakes on this site, the fondant cutouts look so perfect like the process of making and applying them were effortless. TIA!
Hi, sometimes I add a little bit of tylose/cmc powder to strengthen the fondant. That way it keeps its shape. But once you roll it out and have done the cutouts, you need to stick them on the cake straightaway. If not, they will go really hard and you won't be able to stick them on a round cake. 
I'm sure by now you are all done but wanted to say this:
It sounds like you might be rolling your fondant too thin.
It should be 1/4" thick - the same depth as a standard cake circle Then there should not be any problem w/them stretching out of shape. Some people even make theirs closer to 1/2" thick. Personally I like it closer to 1/4".
I don't let anything rest either, cut and apply.
Jen
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