The Xperia S Android 2.3.4 widget for Favorite Contacts disappears when you update to Android 4.0.4.
A workaround is to manually add Shortcuts to 'Direct Dial' or 'Direct message'. You have to do this manually, but it has the advantage of choosing once and for ever whether you want sms/email/mobile/home. BUT I STRONGLY SUGGEST YOU CREATE A 'FAVES' FOLDER AND MOVE ALL DIRECT DIAL SHORTCUTS INTO THIS FOLDER, so as to prevent accidental misdialing. Or at least move the icons away from the edge of the screen. (I just woke up my sister...)
Alternatively, click Phone or Contacts, then click Groups at the bottom, then click the Star at the top (which means Favourites). There should be a shorter way of doing this, but I can't find one. (You can toggle Contacts into Favorites by clicking on the star on each line, and synch this with Gmail contacts - nice.)
