Place the marshmallows & water in a microwavable safe bowl & heat in the microwave for 30-45 seconds.

Stir the marshmallows and check for any lumps and stick in the microwave for another 15 seconds. Continue to check for lumps & heat in 15 second intervals until NO lumps are left.

At this point, add in vanilla & food coloring. I found this to be the easiest stage to mix these in.

To the melted marshmallows, add the powdered sugar. This will need to be stirred until you can't stir it anymore!

Once you reach this stage, take it out of the bowl and place on a work surface sprinkled with powdered sugar. You will knead the fondant until it is no longer sticky, and sprinkle additional powdered sugar on the surface as needed to keep it form sticking to your work surface.

That's it! Make sure to wrap your fondant tightly in plastic wrap to keep it fresh. It is best to use right away, but can be stored in the fridge until ready to use.