A fun way to decorate a cake is to sew some punched shapes with thread to make a banner and string it up between two wooden skewers.
This is a Birthday Bundt cake I made for a dear friend. Lots of different punched shapes would work well for this. Try the Simplicity Geared classic range and see where the inspiration takes you. (Looking at this picture anyone would think I liked chickens!)
Papercraft Post. Susan Niner Janes has a great tutorial on paper chains and more.