Line a 13x9 inch baking pan with waxed paper.

In a large bowl, knead the marzipan with your fingers to soften it.

Stir in the sweetened condensed milk until well combined.

Add the flavored gelatin mix and food coloring, stirring until blended.

Add the coconut, breaking up any large clumps with your fingers.

Stir in the powdered sugar a little at a time, using your fingers if necessary, until the mixture becomes stiff.

Place sugar or decorating crystals in a small shallow bowl.

Pinch off heaping teaspoons of dough and roll into 3/4 inch balls.

Roll the balls in sugar and place them on the prepared pan.

Refrigerate, lightly covered, for 8 hours or overnight.

Store in an airtight container with waxed paper between layers, at a cool temperature for up to 2 weeks.