。
She knows how to make candy.
Literal
She [topic-は] candy [of-の] way-of-making [object-を] knows.
The ~方 (kata) suffix attaches to the masu-stem of a verb to mean 'way of doing X' — here on 作る ('make') giving 作り方 ('way of making, recipe'). This pattern is one of Japanese's most useful constructions for expressing 'how to do X': 食べ方 (way to eat), 書き方 (way to write), 使い方 (way to use), 行き方 (way to get there). キャンデー is from English 'candy,' though Japanese candy culture is its own world — 飴 (hard candy) is the native term, distinct from キャンデー which often suggests Western-style soft candies, jellies, or sweets.