Melt marshmallows and 2 tablespoons of water in a microwave or double boiler. To microwave, place the bowl in the microwave for 30 seconds, open microwave and stir, back in microwave for 30 seconds more, open microwave and stir again, and continue doing this until melted. It usually takes about 2 1/2 minutes total.
To use a double boiler, take a silver bowl and make sure it fits perfectly over the pot you intend to use. Don't forget to fill the pot with water!
Place 3/4 of the powdered sugar on the top of the melted marshmallow mix.
Now grease your hands (don't be shy), then heavily grease the counter you will be using and dump the bowl of marshmallow/sugar mixture in the middle.
To add color, take a little bit if you intend on using more than one color and put it in a ziploc bag. Add the food coloring in the ziploc bag along with the fondant. Close the ziploc back and mix in the color with the fondant. This way you won't stain your hands or any other things.