Bear Country Alpha. The stick is used twice in the preview.
To do this, click Layer>duplicate layer.
Drag in the letters you want to use. When you have them placed.
The marshmallow's are a solid piece and are slightly transparent, so click on the Layer, you should be able to see the stick, so select your eraser (set between 40-45, just slightly smaller) and erase from the edge to the center of the marshmallow.