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1
Butter the bottom and sides of an 8 by 8-inch straight-sided baking pan.
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2
Dust liberally with sifted powdered sugar and set aside.
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3
Pour 1/2 cup water into the bowl of a stand mixer fitted with the whisk attachment.
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4
Sprinkle the gelatin over the water and allow to soften, about 10 minutes.
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5
In a 3-quart saucepan, combine the sugar, evaporated milk and 1/4 cup water.
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6
Stir over low heat until the sugar has dissolved.
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7
Bring the mixture to a simmer and cook, without stirring, until a candy thermometer registers 240 degrees F, about 10 to 12 minutes.
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8
Pour the syrup over the gelatin mixture.
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9
Beat the mixture at low speed until incorporated.
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10
Increase the speed to high and beat until thick, fluffy and tripled in volume, about 10 to 12 minutes.
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11
Beat in the orange zest and vanilla extract until just combined.
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12
Using a spatula, scrape the mixture into the prepared pan and smooth the surface.
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13
Sprinkle with orange decorating sugar.
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14
Allow the mixture to set, uncovered, in a cool place (not refrigerated) for at least 8 hours or overnight.
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15
Remove the marshmallows from the pan and place on a powdered sugar-dusted surface.
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16
Using scissors, dusted with powdered sugar, cut the marshmallows into about 1-inch squares.
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17
Dip the cut sides into powdered sugar to prevent sticking.
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18
Store in an airtight container for up to 2 weeks.
