To make this Homemade Tie Dyed Peace Sign Cake, bake two 10-inch cakes and two 8-inch cakes. Level and stack the 10-inch cakes with frosting between layers, crumb coat, and refrigerate. Level the 8-inch cakes and stack with frosting in between. Make an 8" peace sign pattern out of paper and lay on top of 8-inch cake.
Using a knife, cut out insides of peace sign. Crumb coat and refrigerate peace sign cake. Cover 10-inch cake with fondant. Being careful, place peace sign cake on top of 10-inch cake. For tie-dyed fondant, make 6 equal sized ropes of different colors (I used purple, blue, green, yellow, orange, red). Lay the 6 ropes together into one big rope. Twist several times. Knead gently about 3 times. Cut ball of fondant in half. The cut sides will look the most like tie-dye. Put the two halves next to each other and gently push them together to make one, then roll out.
Put same peace sign pattern on top of fondant and cut out the inside sections only. Lay fondant on top of cake and trim excess of outer circle. Using left-over tie-dyed fondant, cut strips the same width as the peace sign cake is high. Set these strips in the insides. To hide seams, use royal icing or frosting and star tip. To make the stars look tie-dyed, divide the frosting into 6 equal parts and color each one the same colors as the tie-dyed fondant.
Put the frosting into 6 piping bags. Start with red and made one star. Then remove the tip from the red bag and without cleaning it, put it on the orange bag. Make more stars until you just start to see orange frosting. Then remove the tip from the orange bag and put it on the yellow bag. Again, make stars until you see yellow frosting coming through. Continue in this manner until all seams are covered with stars.
For the heart border around the bottom layer, use a heart cookie cutter and cut out hearts from left-over tie-dyed fondant. Glue hearts to cake with a small brush and a dab of water.