I found this recipe in a magazine quite a few years ago and have been making them ever since. They are easy and don't require a candy thermometer. However, you do need a good quality mixer. Great as a christmas gift with hot cocoa mix.
Into a small bow, sift together powdered sugar and cornstarch. Line a 13x9x2 pan with nonstick foil. Coat with nonstick cooking spray and dust with 2 Tablespoon sugar-cornstarch mixture, tilting pan to coat sides. Leave any excess in pan.
Place 2/3 cup water in large bowl. Sprinkle with gelatin. Let soften 5 minute.
In a medium size heavy saucepan, heat sugar, corn syrup, candy cane pieces and salt over medium heat about 7 minute until sugar and candy canes dissolve, stirring occasionally. Strain into bowl with gelatin.
Pour into mixing bowl and beat with an electric mixer until light and fluffy 10-15 minute Spread into prepared pan and smooth top using wet fingers if necessary. Dust with 2 Tablespoon sugar-constarch mixture. Let set at room temperature for 2 hours.
Lift marshmallows from pan using foil. With wet knife or wet pizza cutter, cut marshmallows in squares. Put remaining cornstarch-sugar mixture onto baking sheet and toss cut marshmallows. Let set an additional hour. Store covered or in bags at room temperature.