1. Grease and flour 8-inch round layer-cake pan and 11 x 7-inch baking pan. Line bottoms of pans with wax paper; grease paper.
2. Combine flour, baking soda and salt in a bowl.
3. Stir together buttermilk and lemon rind and juice in a small bowl.
4. Beat butter and sugar in a large bowl at medium speed until blended. Beat in eggs, one at a time, beating well after each. On lowest speed, beat in flour mixture alternately with buttermilk mixture, just until combined. Fill prepared pans half full with batter.
5. Bake cakes in preheaded 325 degree F oven for 35 minutes for 8-inch round cake, and 45 minutes for 11 x 7-inch cake, or until wooden pick inserted in center comes out clean. Cool cakes in pans on wire racks for 5 minutes. Loosen edges of cakes; invert cakes onto racks; cool completely.
6. Line a large board with foil. Cut rectangular cake, as directed in bottom diagram. Arrange round cake and cut up pieces on foil-covered board as directed in top diagram.
7. Prepare Butter Cream Frosting. Use small amount of frosting to attach cakes together at intersecting parts. Tint 1 cup frosting pink, using pink food coloring paste. Tint 1-1/2 cups frosting with red food coloring paste. Leave remainder white.
8. Frost hat with red frosting. Frost face with pink frosting. Frost white band at base of hat. Coat hatband with coconut. Place doughnut at tip of hat. Place candied cherries along top of hatband.
9. Frost beard with heavy layer of white frosting, swirling with small spatula to make locks.
10. Cut marshmallow in half; place for eyes. Attach gum drops with frosting to marshmallow halves. Sprinkle coarse red sugar on face for cheeks. Cut red candy fruit slice for lips. Use black licorice to make eyeglasses if you wish. Makes 24 servings.