I looked up for ideas with Elmo on the web but most of them suggested using the Elmo face cake tin (Wilton's) Those are not locally available here and are too expensive anyway to be ordered on amazon with shipping costs and all. I had to find out an alternative.
I ended up with making my own stencil for Elmo face. Placed it on a square cake that I had baked as a trial for the sheet cake. I cut around the shape with a sharp knife. For the smile I marked it with a toothpick. I forgot to mark the nose!! Had to put orange paper at the end.
Finally I put that cake on top of my 2layers or sheet cake. Iced it with Butter Cream icing. To create the furry effect I used the flower tip of the icing bag and for the smile I spread some icing and then flattened it out with a teaspoon dipped in warm water.