An easy way to create a cloze exercise like the one below is to use the interactive canvas.
(click here to see it in action!)
When you add an interactive canvas to your lesson, select the text tool and create a box where you want your text to sit.
Then either type the paragraph/sentence text so it looks similar to the blue text in the picture above, adding underscores or dots for blanks.
When you're finished, lock the text with the padlock icon so it doesn't accidentally get moved around by your students:
Now just add the missing words/phrases separately on the side, again using the text tool. I like to use a different colour which makes the instructions clearer (e.g. "drag the purple words into the paragraph. These need to be left unlocked, so students can drag them into the paragraph.
I also like putting the words into a 'box' (i.e. a rectangular shape), which should also be locked:
And that's it! Switch over to Student mode and test it out before you run it with your class.