To landscape the play mat/play set, we use expanding insulation foam. It doesn't cost much, but it's not suitable for children to use. So it's the adult who will apply the foam (using the spray can and nozzle) following the plan in pencil indicating where mountainous/flat areas are to be positioned.
The areas in question must be wet a little so that the foam sticks properly to the wood, the foam should be applied outdoors (as it gives off fumes) and the play mat/play set should be left to dry in the fresh air (outside, but in a place sheltered from the rain).
Once the foam has dried, ta da! The landscape is pretty well defined! All that's left to do is start the cutting: form the overhangs and flat areas using a small saw (let an adult do this), the caves and pitfall traps using teaspoons (the kids can do this).