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1
In a small bowl, combine cocoa and water until smooth; cool completely. In a large mixing bowl, cream butter and sugar until light and fluffy. Add eggs, one at a time, beating well after each. Beat in vanilla. Combine the flour, baking soda, salt and baking powder; add to creamed mixture alternately with cocoa mixture. Beat until smooth. Fold in peppermint candies.
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2
Pour into four greased and floured 9-in. square baking pans. Bake at 350u00b0 for 25-30 minutes or until a toothpick inserted in the center comes out clean. Cool for 10 minutes before removing from pans to wire racks to cool completely.
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3
For frosting, in a large bowl, cream butter. Add confectioners' sugar, 1 cup milk and extract; beat on low until combined. Beat on medium for 1 minute or until frosting achieves spreading consistency, adding remaining milk if necessary.
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4
Place one cake layer on a serving plate; spread with frosting. Repeat three times. Frost sides of cake.
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5
For fondant, in a large mixing bowl of a heavy-duty stand mixer, cream shortening until light and fluffy. Beat in confectioners' sugar until crumbly. Gradually beat in corn syrup on low speed (mixture will be stiff).
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6
Divide in half; tint one portion red and one portion pink. For ribbon, on a work surface dusted with confectioners' sugar, roll out red portion into a 19x4-in. rectangle; cut in half lengthwise. Carefully arrange over cake, draping ends down the sides. On a work surface dusted with confectioners' sugar, roll out pink portion into a 19x2-in. rectangle; cut in half lengthwise. Carefully position over red ribbon, draping ends down the sides.
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7
Just before serving, break ribbon candies in half; place over ribbon on top of cake, creating a bow. Decorate with round candies if desired.