The cupcake decor is done! I found a Disney printable in a circle shape and punched it at 1.25". Then I punched a background circle from coordinating papers at 1.5". I ran all the circles through my 2.5" Xyron machine. I don't use it often, but it was made for a proect like this.
I adhered the layered circles to a scalloped circle with a toothpick sandwiched in-between. I've learned that it's nice to have more than 1 design to add interest, so I punched a few stars and adhered them to plain circles for some variety.
UPDATE: Adding a photo of the finished project. So cute!