I never use the KA for fondant. It isn't that difficult to make it by hand.
Coloring the whole batch is easy, just add the color with the liquid and add about 1/2 of the sugar, stir by hand. put some sugar on the counter, dump out the mixture ad knead until smooth.
To color smaller amounts, make a smaller batch. the recipe is easily reduced.
To add color to already made MMF, use gloves. rub shortening in your gloved hands and knead in the color. It may require some additional sugar or cornstarch to compensate for the liguid color. I often just add powdered color and some more shortening.
Sure, any color works. You should probably make a color just slightly darker than you want in the end. The sugar lightens it just a bit, but not a lot. If you add a lot of color, the MMF may actually take all the sugar, when normally it doesn't need the whole measure.
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