You can make MMF (marshmallow fondant)...I make it all the time...very easy...many recipes in the recipe section here
You can add your own flavor, color etc.
Can't say if its as smooth as premade fondant as I have never had any premade fondant except Wilton which I didn't like at all.
Good luck
I use the Michele Foster's Fondant recipe found here on CC. It's quite simple and performs just a tad better than MMF, and tastes way better. I have used Satin Ice and Pettinice and Wilton and well, as for Wilton I only use that for figures that are absolutely, positively not going to be eaten. Wilton performs well for making deco's because it is firmer than MMF.
I liked the performance of Satin Ice and Pettinice and thought they were a little easier to manage than homemade fondant, but not enough to offset the price for me. I also don't care for the taste of either; they still have that strange manufactured taste (to ME).
Whether you try the MMF or MFF recipe, be sure to add enough powdered sugar before deciding it's "done" - I think that was the first mistake I made when attempting homemade fondant for the first time; I didn't put enough PS in and it was too soft and sticky. If you watch some videos of people rolling out fondant, you will see how much like soft clay it is; it's not sticky at all.
That was my unsolicited tip for the day 
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