Melt marshmallows in the microwave until they are nice and fluffy, then stir.
I add the food coloring at this point and stir it in - but some people wait until they are kneeding the fondant. If you add before - consider it will be lighter once you add the powdered sugar. Unless you know how much you need to add - wait until you are needing the fondant.
Stir in 3/4 of the powdered sugar in with the marshmallows. Mix together. Add the remaining powdered sugar and knead until all the powdered sugar is mixed in.
Place onto the counter and knead for an additional 5-10 minutes the mixture is soft/glossy. If your fondant starts to feel too dry - add a 1/2 tablespoon of water.
If you haven't already - add the desired amouintof food coloring and knead into the fondant until you have your desired color. (You might want to wear gloves to avoid getting food coloring on your hands. If your fondant gets too hard - add 1/2 tablespoon of water.
Now your fondant is ready to roll out and use! To store, grease the outside of the ball and wrap with plastic wrap and place into an air tight bag.