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To create a Cloudwatch Log Group with a KMS key in Terraform, you can use the following code:

resource "aws_kms_key" "example" {
  description = "Example KMS Key"
}

resource "aws_cloudwatch_log_group" "example" {
  name = "example-log-group"
  kms_key_id = aws_kms_key.example.arn
}

In this code, we first create a KMS key using the aws_kms_key resource. We then use the ARN of this KMS key (aws_kms_key.example.arn) in the aws_cloudwatch_log_group resource to specify which KMS key to use for encrypting the log data.

The aws_cloudwatch_log_group resource also specifies the name of the log group as example-log-group. You can replace this value with any name that you prefer.