This sneaky little shortcut is located at the point where the first drop-off is found on the Ice River Run level. At the drop-off where there are plenty of strawberries drop down to get them and then go right to take the shortcut.
To get a token and about seven extra lives go to Butane pain. Once you are on the tree after the tree after first set of fire things look down and you should see the non-cirlcular b-doings. Bounce on them and you should land on a tree. Bounce on the thing in the middle and you should be surrounded by lives and a token. You could take the non-circular b-doing back to the tree just in front of the tree you were on before.