I would not take away his food or water, I would just maybe buy and ex pen and keep him in there with his food , water , toys and bed.. keeping his bed and toys at one end and the potty pad at the other, its a good long long time before yorkies are potty trained and that is with consistance... if you dont have a ex pen try gating him in the kitchen when you cant supervise him... he needs to learn where he can potty and puppies think anything that remotely looks and feels like a pee pad is one

.... try keeping some really good treats near his pee pads and when he goes there give him some great praise and a great treat... !! Its going to be some time before he will learn to control his bladder since its only the size of a quarter.. puppies are very active, keep his water and food down at all times... so he will be strong and grow!