The stone statue of Old Master Cannoli is located in the northwest corner of the Secret Woods.
Before obtaining a stardrop from the statue, the statue reads:
If the statue is gifted a sweet gem berry, which is grown from a rare seed first obtained from the Traveling Cart for 600–1,000g, its mouth opens and its eyes turn red. Interacting with the statue again gives the player a stardrop. This happens once, and then the player can no longer interact with the statue. In a multiplayer game, all players can receive a stardrop with the use of one sweet gem berry.
Trivia
Old Master Cannoli may be a reference to Obi-Wan Kenobi from Star Wars, as their names and appearances are similar