Prepare an 8 x 8 baking dish by lining it with parchment paper and spraying the parchment paper with cooking spray. Set aside.
Weigh out the correct amount of Nerds candies and place them in your medium sized pot. Add one tablespoon of water.
Melt over medium heat in a medium sized pot. Stirring every now and then to distribute heat.
While the nerds are melting, bloom your gelatin.
Bloom gelatin by whisking together 200 grams of cold water with 40 grams of unflavored gelatin in the mixing bowl of a 5 quart planetary mixer. Let it sit, undisturbed, until nerds are melted.
Once nerds are melted, turn heat to high. You will still see large clear grains of dextrose. Boil for 5 minutes, stirring constantly.
After boiling, turn off heat and allow melted candy to sit for 5 minutes. After 5 minutes, pour the melted candy directly on top of the gelatin.
Turn the mixer on low for 30 seconds to combine the syrup and gelatin.
Increase the speed to high and let it mix for 10 minutes.
Turn off mixer. Pour nerds marshmallows into prepared pan.
Place another piece of oiled parchment paper on top of the marshmallow, creating a seal.
Let nerds marshmallows sit for 12 hours undisturbed before cutting.
After 12 hours, oil a sharp knife and cut marshmallows into desired size. 2" x 2" is recommended.
Toss marshmallows in powdered sugar.
Store in an airtight container.