Can china grass (agar-agar) be used as a substitute to gelatin in fondant cake icing?
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Hello Poonam, and welcome to the site. I deleted your second question because I thought it was quite unrelated. Feel free to ask it again in a new question though. – Mien Sep 08 '12 at 06:20
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I'd prefer if the OP *didn't* ask that (now deleted) question again, as the answer is trivial to look up... – Aaronut Sep 08 '12 at 14:10
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Yes, there are several vegetarian fondant recipes using agar. Most tend to substitute it for gelatin in equal amounts.
Keep in mind two things:
Agar has a much higher melting point and sets firmer than gelatin, so the resulting icing will be less "melty".
The hydration process is completely different from gelatin. It doesn't bloom; it needs to be dispersed in cold/warm water and then heated all the way up to 90° C with constant agitation.
I'd recommend that you include the glycerin in any agar-based fondant recipes - they'll make it a lot easier to work with. Some gelatin recipes leave it out but IME you need it more for agar.

Aaronut
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