How to create negative space around object?
I have found several responses that are close to what I need to do, but not exactly applicable to my specific need.
I'am trying to create a negative space between 2 objects. I was able to achieve what I wanted to do via a white stroke in the first image (I know I accidentally cropped out part of it on both), but that didn't change the outline view which I need to be reflective of what I was trying to create. The second picture is what I have to work with. Thank you for help with what seems to be pretty basic of a task.

