A young smiling girl is holding a stuffed animal in one hand and a candy apple in the other.
A young smiling girl is holding a cute stuffed animal in one hand
A young girl is holding a stuffed animal and a candy apple in her hands.  Cute describes the stuffed animal
Sentence 1 states that a "young smiling girl" is holding a "stuffed animal" "in one hand". Stuffed animals are typically cute.
Young smiling girl who is holding the stuffed animal which is cute.