An edible decoration is laser kiss cut from an edible decorating sheet by optically sensing at least one printed edible design on the edible decorating sheet relative to a laser cutting tool coordinate system and driving a laser along a circuit of cutting locations defined in the laser cutting tool coordinate system. The laser beam forms a separation channel by laser ablation of at least a portion of the edible decorating sheet at the cutting locations while leaving intact the non-adhesive releasable backing upon which the edible decorating sheet rests.