I saw this hello kitty cake here- http://cakecentral.com/g/i/2903033/hello-kitty-cake/#order=518&albumId=8&nextId=2903034&prevId=false&imageId=2903033&imageESOId=6838169&fullUrl=%2Fg%2Fi%2F2903033%2Fhello-kitty-cake%2F%2F&fullSrc=http%3A%2F%2Fcdn001.cakecentral.com%2F2%2F28%2F900x900px-LL-2819e953_DSC_5578.jpeg&thumbSrc=http%3A%2F%2Fcdn001.cakecentral.com%2F2%2F28%2F50x50px-ZC-2819e953_DSC_5578.jpeg&description=Hello+Kitty+cake&original=http%3A%2F%2Fcdn001.cakecentral.com%2F2%2F28%2F2819e953_DSC_5578.jpeg&setName=&urlSlug=hello-kitty-cake

I am trying to figure out how to make the bottom tier covering like this- is it ruffled with a garrett cutter or other circle type frilling tool or pleated, and shaped around dowels?

If I wanted my ruffles to stand out like a tutu, do I need to let the ruffle dry before adding it to cake?

You can ruffle it in sections, then put on cake, or you can ruffle it in sections after putting it on cake. Once you have applied it, you can lift it our in sections with a g/p tool and it will stay. dont, mess with it after it starts drying . do it quickly. I would p/m the person who did this cake. I am sure she iwill help you on your question. hth

Thanks for your reply. I did PM her but she hasnt responded. What I cannot determine is if this is shaped around a towel or ruffled by thinning and straigtening a curve out. I'm guessing shaped/folded, but wanted other views.

I believe those are flat, straight strips of fondant that you pleat as you apply the strip to the cake.