What exactly is this hello kitty image made out of? I've seen fbct but I don't think this is that. What is this and how is it done? Thank you in advance!

http://catchmyparty.com/photos/1615774

It looks like it is cut out of gumpaste and then decorated with royal icing like a cookie, IMO

Thank you. It looks so good and clean. Don't know if I can  pull that off. 

It doesn't look at all like royal. It looks like skinny fondant sausages to me.

It looks more to me like colorflow.  Look at how the arm slightly is higher/deeper than the rest.  The bow is made separately and added.

I would replicate that by cutting/drying out fondant pieces for the body bow & clothes (fondant is so much tastier/chewable than gum paste) and then use an edible ink marker for the outline & detail

I think that the background was made by cutting out the shapes in black gumpaste or fondant. Then slightly smaller pieces were cut out in white and pink and placed on top for a layered effect. I think this is how the cricut works. Maybe they used a cricut cake. 

Looks like fondant to me, too.

It looks like chocolate/candy coating to me.  When done on parchment paper, the chocolate will lay flat on the downside.  The bow looks to be done in fondant.  I think it can be done in any of those mediums; it is what you are comfortable with.