For the daisies: Grease a clean pan or counter top with vegetable shortening. Knead the fondant until it's easy to manage. Add the tylose powder and work it into the fondant with your hands. Roll out the fondant to about 1/16 of an inch. Use a little corn starch on the counter to keep from sticking. Using a daisy fondant cutter in two sizes, cut out about 75 daisies. Use a fondant smoothing tool to flatten out the petals a bit. Place in a clean egg carton to let dry in a rounded shape. It's best to let them dry overnight.
For the cake: Preheat oven to 350°F. Grease 3 (8-inch) round cake pans and line with parchment paper. Grease again or spray with non-stick cooking spray. Set aside. Place all ingredients in a large bowl. With an electric mixer, stir on low speed to combine (30 seconds). Then turn mixer up to medium and beat for 2 minutes. Divide batter evenly into 5 bowls. Color each with a different color. Place scoops of different colors in each pan, so that there are 5 different colors in each pan. Divide evenly between the 3 pans. Swirl colored batter with a butter knife. Bake in preheated oven for 40-50 minutes or until a toothpick stuck in the middle of the cake comes out clean. Let cool. Level the cakes by cutting horizontally to remove the domed tops. For the buttercream: Beat softened butter on medium speed with an electric or stand mixer. Beat for 3 minutes until smooth and creamy. Add powdered sugar, cream, and vanilla extract with the mixer running on low. Increase to high speed and beat for 3 minutes. Note: If the frosting is too thick, you can add a little more cream. Just add one tablespoon at a time, then mix thoroughly until you get the consistency you like. Add yellow food coloring and stir to combine.
Fill and frost cooled cakes with a crumb coat. Let it chill in the refrigerator for two hours. Add the last layer of frosting. Place in refrigerator to chill for an hour. Reserve remaining frosting. Place about 1 cup of remaining frosting into a pastry bag fitted with a #5 round tip (you will use this to "glue" the daisies to the cake).
Make the royal icing. Place the remaining powdered sugar, meringue powder and water in a large bowl. With an electric mixer, mix on low for 6 minutes. Scoop royal icing into a plastic container with lid. If icing is too thick, add a few drops of water and stir until it is like the consistency of toothpaste. Add yellow food coloring. Add about 1-2 cups of frosting to a pastry bag fitted with a #5 round tip. Then place the lid on remaining frosting so it doesn't dry out. Pipe a little frosting in the large daisy. Add the small daisy, then add another dot of frosting for the flower center. Keep a damp paper towel around the pastry tip in between decorating, so it doesn't dry out. Royal icing dries out really fast! Use extra icing to frost cookies on another day. It lasts a few weeks at room temperature.
Decorate the cake. Use the buttercream in the piping bag to "glue" the daisies to the cake. Serve immediately or store in refrigerator for up to 3 days.