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Freeze marshmallows for at least 30 minutes before starting.
Line a baking sheet with paper towels and a wire rack.
Heat enough canola oil in a deep pot or fryer to 375°F.
In a bowl, whisk together milk, egg, and vanilla extract. In a larger bowl, create a well in the pancake mix, and then add the milk mixture. Stir until just combined, leaving the batter slightly lumpy.
Dip 4-5 frozen marshmallows into the batter, coating them completely.
Fry marshmallows in hot oil for 25-30 seconds per side, or until golden brown.
Remove marshmallows and place them on the prepared sheet to drain excess oil. Repeat until all marshmallows are fried.
Dust with powdered sugar and add whipped cream, chocolate sauce, and sprinkles as desired.
Serve and enjoy!
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