There really isn't a cure for it once it is on the cake. You can use a smoother and try to smooth it out, but it never gets it quite right.
Kneading and then kneading some more is the only way I have gotten the fondant smooth. Maybe others will chime in with their ways of making it work.
I find that the more I've kneaded the fondant before rolling it out, the more likely I am to get elephant skin, I'm guessing that would be because the fondant dries out a bit as I'm handling it - ? I've started using a mat to roll the fondant out on, then just pick that up, flip it on to the cake and peel the mat off, which leaves what was the underneath of the fondant (which hasn't dried out while rolling) as the top surface on the cake - I don't get any elephant skin doing it this way.
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