Ocean: Starting 1 1/4 in. from edge of 1 frozen cake layer, cut out a kidney-shaped piece of cake about 2 1/2 in. across in the middle, cut all the way through cake. Reserve cutout piece of cake. Place uncut cake layer on a serving plate; spread top with 1/2 cup frosting. Set cake with cutout ocean on top. Spoon 1/2 cup frosting into a bowl, cover and set aside.
Mound for beach: Cut an oval about 3 in. long, 2 in. wide from reserved cutout cake. Trim mound to about 1/2 in. high.
Carefully frost sides of cake, inside of ocean (be sure entire inside is coated) and top of cake near inner curve of ocean. Set mound in place at curve. Cover with frosting, spreading frosting so it slopes down to top of cake. Shield rest of cake, then carefully sprinkle beach sand on mound. Press sand gently to adhere.
Transfer 2 Tbsp frosting from reserved 1/2 cup frosting to a cup; cover and set aside. Tint what's left of the 1/2 cup frosting blue. Spoon 1 Tbsp blue frosting into a sturdy ziptop bag. Spread remaining blue frosting with a small metal spatula on unfrosted border on top of cake and into waves around upper sides of cake. Sprinkle top with crystal sugar. Press to adhere.
Decorations for side of cake: Dip a toothpick into blue food color and dot eyes on fish crackers. Press other decorations and fish in place. Cut tip off corner of bag with blue frosting. Pipe bubbles coming from fish (save a bit of frosting in bag).
Prepare gelatin as directed on box for speed-set. When ice cubes are removed, use a small ladle to slowly fill ocean to about 1/4 in. from top. Refrigerate cake 2 hours or until gelatin is very firm.
Use about 1 tsp of the reserved 2 Tbsp white frosting to frost back of lifeguard's chair and to glue red cross in place and assemble chair; set aside to dry.
Teddy Grahams: Divide remaining reserved frosting among 4 cups; tint each a different color. Dip a toothpick into blue food color; dot eyes on vanilla bears. Pipe blue frosting left in bag for eyes on chocolate bears. Using a toothpick or small paintbrush, paint bathing suits and features on bears. Set aside to dry.
Up to 60 before serving: Set bears and decorations for top of cake in place; refrigerate
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