Prepare a 9x13 by lining the bottom and sides with foil and spraying with Pam. Pour 1/2 c cold water into large bowl of electric mixer. Sprinkle gelatin over the surface of the water and set aside. Combine sugar, corn syrup, salt and remaining 1/2 c water in a heavy 1 1/2-2 qt saucepan placed over moderately low heat. Stir constantly until sugar dissolves and mixture comes to a boil. Insert a candy thermometer and let syrup boil, without stirring, until temperature reaches 240 degrees. Do not overcook. Remove from heat. Handle carefully as sugar syrup is hot. Slowly pour syrup into the gelatin mixture while beating constantly at medium speed. When all syrup has been added increase speed to high and beat for 15 minutes until mixture is lukewarm, snowy white and the consistency of whipped marshmallow. Add vanilla a few minutes before the end of the beating time. Pour the slightly warm, thick marshmallow mixture into the prepared pan. Let stand overnight, uncovered, at room temperature.
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To serve, spread a generous amount of powdered sugar over a cutting board. Remove marshmallow from pan and place on cutting board. Remove foil. Cover top surface of marshmallow with powdered sugar. With a sharp knife dipped in powdered sugar, cut marshmallow into 1 inch cubes. Roll each marshmallow in more powdered sugar. Store in airtight container. Makes 1 1/2 pounds.
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