I saw a similar type concept of a card while surfing today. The small 3.5" card is attached to the scalloped square background - very cute idea!
And sorry for the blurry picture - I guess the scanner didn't like layers!?! It looks much better in real life!
Anyway, here are the details - I used the Art Philosophy cart, pg 33, to cut the square at 4". The beige background was cut at 3.5" x 7", then folded in half. The cupcake is from pg 70, cut at 2.5". I stamped the cupcake using one of the 3 stamp sets that came with the Art Philosophy cartridge. The sentiment was from Just a Number, in black ink. I used our corner rounder on the card and finished it all off with crystal stickles.
Have a great day!