1Discard unpopped kernels from popped popcorn.
2Heat butter and marshmallows in Dutch oven over low heat, stirring constantly, until mixture is smooth; remove from heat. Stir in peppermint extract. Carefully fold in popcorn until evenly coated. Cool slightly.
3To make penguin, shape popcorn mixture, using well-buttered hands, into a log about 9 inches long and 4 inches in diameter. Shape so one end is narrower, the middle is wider and the other end shaped to a point. Curve the pointed end to make a tail. Shape popcorn to make feet and beak. Place candy canes on lightly buttered serving plate; set penguin upright on candy canes, turning the curved ends of the candy canes upright to resemble skis. Press popcorn mixture firmly onto candy canes.
4Brush vanilla coating over penguin, coating completely. Refrigerate just until coating is set. Brush on chocolate coating for penguin's coat. Make stocking cap and scarf from fruit rolls; decorate with vanilla coating if desired. Complete penguin by decorating as desired with candies. Microwave Directions: Place marshmallows in 4-quart microwavable bowl or casserole. Cut butter into 4 pieces; place on marshmallows. Microwave uncovered on High 1 minute; stir. Microwave uncovered 30 seconds to 1 minute 30 seconds longer or just until mixture can be stirred smooth. Stir in peppermint extract. Continue as directed.