Hi!  I'm a fondant novice, but I would love to make cupcake toppers like this for my daughter's bday.  It looks to me like layers of red and white fondant, but I'm wondering:

1) How do I attach them to each other?

2) How do I make it so they don't look like disjointed circles, but instead connect smoothly to each other so it really looks like a hat?  

3) This is related to #2, but how do I make the edges of the circles more rounded?  If I roll out the fondant and use a circle cutter, the edges of the circle will be pretty rigid, I think.

I can buy red and white fondant and roll them out and make circles, but that is where my knowledge ends :).

Also, I assume the black is some sort of edible marker?

Why don't you use a single piece of white fondant and paint the red stripes; then when they're dry add the black accents with a fine paintbrush or edible marker?

I would roll out balls and then flatten them.  This will keep the edges rounded.  A tiny bit of water will glue them together, but I find that once you roll it into balls, it's warm and it'll stick together on its own.  So I would roll and flatten red and white, stack them, and then slightly roll them  together, pressing on one side more than the other for the lop-sidedness.  And I would use an edible marker for the black.

I've made Dr. Seuss hats a couple times. You can:

1.take alternating white and red fondant balls, stack them adding some water or royal icing in between to glue them together and smush them down.

2. Make a white pillar and paint red stripes and black accents(as suggested before) 

3. Make red little pillars and attach a white band around them and add black accents. 

Thank you all so much...such a big help!