Place marshmallows and 2 tablespoons of water in a microwave. Microwave 30 seconds; stir. Continue microwaving 30 seconds more; stir again. Continue until melted (about 2 1/2 minutes).
Place 3/4 of the confectioners´ sugar on top of the melted marshmallow mix. Grease hands and counter GENEROUSLY; turn marshmallow mixture onto counter. Start kneading like you would bread dough. NOTE: Please be careful, this first stage can get hot. Continue kneading, adding additional confectioners' sugar and re-greasing hands and counter when the fondant sticks. If the mix is tearing easily, it is too dry; add water (about 1/2 tablespoon at a time then knead it in). Continue kneading until mixture forms a firm, smooth elastic ball that will stretch without tearing, about 8 minutes.
YIELD: Makes about 2 pounds fondant.