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Spray 9-inch square baking dish with no stick cooking spray then coat with some of the confectioners’ sugar. Set aside. Microwave 1/2 cup of the water, granulated sugar and corn syrup in medium microwavable bowl on HIGH 7 minutes. Stir to dissolve sugar. Microwave on HIGH 5 minutes longer. (Mixture will have a slight yellow tint.) Carefully remove hot bowl from microwave.
Meanwhile, place remaining 1/2 cup water in mixer bowl. Sprinkle with gelatin. Let stand 5 minutes. Gradually beat in hot syrup mixture with whisk attachment on medium-low speed. Beat 8 minutes. Increase speed to medium-high. Beat 10 to 12 minutes longer or until mixture is fluffy, shiny and at least tripled in volume. Beat in extracts and food color.
Spread marshmallow mixture in prepared pan. Smooth top with a spatula. Sift about 2 tablespoons of the confectioners’ sugar over top. Let stand at room temperature overnight or refrigerate at least 3 hours.
Place remaining confectioners’ sugar in large bowl. Cut marshmallows into 1 1/2-inch squares. Add marshmallows in batches to confectioners’ sugar; toss to coat well. Shake off excess. Store marshmallows in airtight container at room temperature up to 3 days.