Yep, you sure can with Quartz.
There is a tutorial here that shows you how to take a UIImage and mask a part of it.
http://iphonedevelopertips.com/cocoa/how-to-mask-an-image.html
Here is the code from that page (incase it goes down for some reason)
- (UIImage*) maskImage:(UIImage *)image withMask:(UIImage *)maskImage {
CGImageRef maskRef = maskImage.CGImage;
CGImageRef mask = CGImageMaskCreate(CGImageGetWidth(maskRef),
CGImageGetHeight(maskRef),
CGImageGetBitsPerComponent(maskRef),
CGImageGetBitsPerPixel(maskRef),
CGImageGetBytesPerRow(maskRef),
CGImageGetDataProvider(maskRef), NULL, false);
CGImageRef masked = CGImageCreateWithMask([image CGImage], mask);
return [UIImage imageWithCGImage:masked];
}