Marshmallow creme was invented in the early 20th century, after “regular” marshmallows had been in production for a number of years. It is made using some of the same ingredients that come into play in most marshmallow recipes - sugar, corn syrup, vanilla - but creme usually uses egg whites (often in powdered form) while regular marshmallows tend to use gelatin as a stabilizer. The reason that marshmallows usually use gelatin is to give them some firmness, allowing them to be sliced and packaged in pieces. Marshmallow cream does not firm up and remains soft, even when it sits out for a while.
Sugar-Free Marshmallows & Marshmallow Creme Recipe - from RecipeZaar


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