Hi,
Unfortunately this type thing happens when birds nest in a container that isn’t suitable. I always recommend discarding eggs when laid in a makeshift nest, because the alternative is what is happening now, and watching chicks die is heartbreaking. You can try removing some material, but the parents might abandon the chicks. I don’t have a good solution because you never know how parents will react to having their nest disturbed. In captivity, their instincts aren’t as strong and captive breeding birds are very sensitive to being disturbed while nesting. They very well may have pulled the one chick out and away from the nest, in an effort to give the other room. Whatever happens to these chicks. Once they are out of the “nest”, remove that bowl and give the adults some smaller containers for food that they can’t sit inside of. Rest them for a few months and then get them a proper nest and nesting material. Using a food item is just asking for mold and bacteria to grow in the nest. I realize this was likely their idea, but you will need to be careful not to give them any food they might use this way. The best nest is the hut type, and you should attach it high in the corner of the cage, with enough room for the male to sit on top. Usually the female will spend most of the time in the nest and the male sits on top to guard her. There is commercial nesting material you can buy, but avoid anything too fine or stringy, because they can get this wrapped around toes and legs. Always rest a pair for a few months, without a nest, between clutches. They only need a nest when raising chicks.
Thank you for asking Lafeber,
Brenda