I have seen a ton of posts with the same issue and Swear I keep trying the suggested solutions. I made some fondant at home and followed the recipe to a "T". It tastes great, but when kneading it, you can see the cracks or possible dryness; even though it's quite shinny and doesn't seem "dry". I tried adding small amounts of water and that just got me "gooey" fondant. I tried adding Crisco and still no luck. It's almost "slippery" where it's hard to pick up from almost seeming oily on the outside but you can see the inside looks almost cracked. It also takes forever to set or harden when trying to make accessories from it. What am I doing wrong? I read that even though the recipe called for 2 lbs of sifted sugar, I should have left a cup out? When I used the fondant to cover a cake..it rolled out great but would almost peel apart when I lifted to add it to the cake. I finally got it to cover the cake but kind of cracked or ripped on it's own just from sitting on the cake (on the sides)?? Does this sound right??

The next part of my question is.. am I just better off to find a brand of commercial made fondant and purchase it? I am in a small area and only have access to a Walmart store and am very limited. I have heard of Satin Ice Fondant being a great compromise, but the shipping costs seem to be the expensive part with those.

When I have made it I put in one cup of the powdered sugar, and then knead it. Then I add in a little at a time until it's the right consistency. Hope that helps!

Sounds like too much PS was added. Out of the 2 lbs, I only use about 1.5 lbs - just add enough until it feels right.

I've got a bunch of tips and hints to working with MMF on my blog - it'll help answer some questions you have about it.

Also, don't add more shortening than is needed to keep it from sticking to things. If you want it to be more pliable, add a few drop of light corn syrup or glycerine. To save the batch you have, you can melt more marshmallows, add a little bit of PS to it to pull it together then knead it into the batch you have.

http://sugarsweetcakesandtreats.blogspot.com/2010/09/recipe-marshmallow-fondant-mmf.html

What is the recipe you are using?

one thing i add to my mmf for covering cakes with is i add some light corn syrup to the marshmallows prior ot melting. it makes the mmf nice and pliable and little if any blemishes.

Thanks everyone for your replies. I have tried two recipes now. The first was the 16 oz bag of marshmallows, 2 - 3 Tbls of water, vanilla, 2 lbs of PF and crisco. I thne tried water or crisco and still cracking, but looks "silky". I have tried it thicker and lighter. I have tried both Duff's and Wilton's fondan and no issues. Last night I tried the recipe with corn syrup, vanilla, 8 cups of lightly packed marshmallows, butter, etc. I noticed the consistency of this to be differenet than my first batch. I let it sit over night and as I went to knead it... the same thing... seems dry. BUT looks wet. I have put it in the microwave, tried the crisco, water, etc. I am thinking that I will have to leave out the extra PS as suggested. I am very frustrated because I love the taste of this, but it's very difficult to work with. I am going to check out your posts again. Thank you!!

I find that too much shortening in the marshmallow fondant can cause problems (generally I will reduce the 1/2 cup called for in most recipes to a max of a quarter cup).  Likewise, add the sugar slowly, as humidity can really impact the consistency (sometimes I have used much less than 2lbs and sometimes even a little more).  I also agree with adding up to 2 T of corn syrup.   This will definitely help with the elasticity.  If you find that it is dry or cracking (and not stretchy), put it in the microwave for 30 seconds.  Then add in a couple of tablespoons of corn syrup and knead and pull like taffy.  You should notice it becoming more elastic the more you knead and pull.  If all else fails, try melting and reincorporating more marshmallows.  In my early days of making MMF, I saved a couple of batches this way. 

Also, I find that working with it a little warm actually helps will rolling out a thinner, more pliable layer.