Homemade Peeps

1 pkg unflavored gelatin
1/3 cup cold water, for gelatin, plus 1/4 cup for syrup
1 cup sugar

 In the bowl of an electric mixer, sprinkle gelatin over 1/3 cup cold water. Allow gelatin to soften, about 5 minutes.
In a small saucepan, combine 1/4 cup water and sugar, and stir over med-high heat until sugar is dissolved. Stop stirring, and place a candy thermometer into sugar water.
Boil sugar until temp reaches the soft-ball stage (238 degrees). 
Remove syrup from heat; add to softened gelatin. Using the whisk attachment of an electric mixer, hand-stir the mixture a few minutes to cool; place bowl on the mixer stand. Beat on medium high with the whisk attachment until soft peaks form and the marshmallow mixture holds shape, 8 to 10 minutes.
While the marshmallow is mixing, get your pans ready, because you will need to work fast once the marshmallow is done.  It sets very quickly.
Sprinkle a flat dish with the color sanding sugar you would like to use. 
Be generous.
Reserve the rest to coat your Peeps.
Transfer marshmallow mixture to a large (14-inch) pastry bag fitted with a  1A Wilton tip, and use immediately. If you don't have a 1M tip, just cut the end off of the pastry or large ziplock bag so you have a decent size hole.

**I didn't have a large pastry bag, so would recommend using 2 small bags if you don't have the large.  If you try to refill the bag, as I did, the marshmallow mix sets up way too fast and makes it extremely tough to pipe.

Now pipe in the shape that you would like.  It took me a few times to get the right shape.
Dust them with the colored sugar last after they have set a bit, because then you can easily roll them in the sprinkles and get the sugar in every nook and cranny.  If you try and do this while they are still wet, you could mess with the shape.
And then if you want to be extra cute...put him on a stick