I dunno, that paddle is awfully small. Do you have a KA? Former CC member ShirleyW used to color a small (golf ball sized) wad of fondant and then put it into her KA with a bigger chunk of it...with the dough hook I think.
I don't think it would work. Bread doughs are soft and fondant is still. I don't think the the paddle would be able to knead it. The only way to know for sure is to try it, though. Just keep an eye on the machine to make sure it isn't straining too much.