Marshmallow fondant is amazing stuff. It is easy, affordable, and fun. You can make anything with it. However, it can be tricky to make if you don't follow just the right steps for consistency. I am still figuring it out, however, here is the 5 step recipe I have fine tuned so far:
Five Step Marshmallow Fondant
1 10 oz bag of mini marshmallows
2 tbsp of water
1 bag of powdered sugar
1. Prepare a large glass or metal bowl with half a bag of powdered sugar and put it in a cleared sink (this works very well for me with the kneading process - my bowl has a sticky bottom to keep the bowl from slipping - If you don't have this put a sticky/plastic fabric between bowl and sink).
2. Put marshmallows and water in a glass bowl. Microwave about 20 seconds on high, stir with a spatula, heat again 15 seconds, stir. Repeat until marshmallow have dissolved. Do not overheat as it can ruin the marshmallow consistency.
3. Add your color to melted marshmallows and stir. When thoroughly mixed pour your gewy mixture right into the center of the bowl with the powdered sugar in the sink.
4. With your spatula GENTLY and SLOWLY fold the sugar into the marshmallows. As the marshmallow thickens start kneading. Add powdered sugar when necessary. After 10-15 minutes you should have a nice ball of Marshmallow fondant.
5. Coat your fondant with shortening and wrap your ball tightly in plastic wrap and in a plastic bag. REFRIGERATE your fondant overnight. If you do not refrigerate your fondant it will not hold it's shape when you try making things like bows and it will not be the right texture. Bring out your fondant a few hours before you start decorating so that it is nice and soft and pliable when you want to use it.