1 package of mini marshmallows
1 Tbsp of shortening
1 Tbsp of water
6 cups of powdered sugar
Gel food coloring
1 tsp of flavoring (optional)
1 pair of plastic gloves
1 large bowl
1 medium glass bowl
1 gallon zip lock bag
First, I coat both bowls, the spatula, and my plastic gloves with the shortening. Microwave the miniature marshmallows and Tbsp of water in the glass bowl in 30 second increments until the marshmallows are melted. It takes me about a 1.5 to 2 minutes.
Once they are melted, stir in the food coloring and any flavoring you might want to add. The color will darken just a bit, so keep adding until you almost get to the color you want. You may need to reheat the mixture for about 10 seconds.
Sift the powdered sugar into the large bowl and make a small well in the center. Pour the melted marshmallow mixture into the well and carefully fold with the spatula. Be careful so as not to burn your hands. It will be hot. Eventually, you will need to knead the mixture with your hands. Mix and mush the marshmallow and sugar until it feels like play-doh. (You won't use all the sugar.)
Mold the fondant into a ball and coat it with shortening. Wrap the ball with plastic wrap and store it in the zip lock baggy. I leave the fondant to rest on the counter, not the fridge! The your fondant rest for at least 12 hours...24 would be better. Marshmallow fondant isn't as stretchy as regular fondant but will work just as well. You may need to microwave the fondant for 5 seconds to make it more malleable.
Here is a video of the process. I did things a little different.