The creature is a massive, buoyant, smiling cloud comprised of fluffy yellow candy.
To defeat this foe, Yoshi simply has to lick up its candy body.
However, Yoshi does have to watch out for Cloud N. Candy's Jump attack.
As Yoshi licks the creature it shrinks to a smaller and smaller size, making it quicker and more agile.
Each lick of the candy body will restore some of Yoshi's health and after repeated licks, Cloud N. Candy will disappear into Yoshi's belly, never to be heard from again.