Peeps

The marshmallow part of peeps are made of of marshmallow, sugar, corn syrup, gelatin, and a couple of other chemicals that is mixed and then whipped.  The sugar coating is made by mixing sugar and food coloring in a special barrel, and then it is spread out onto the conveyer belts that the marshmallows go on.  After the marshmallows are shaped, they are placed on this conveyer belt and they go into a wind tunnel where the sugar is whipped around and it coats the marshmallows. The ingrendients in peeps are: sugar, corn syrup, gelatin, contains less than 0.5% of the following ingredients: yellow#6 lake, maltodexrtin, natural flavors, potassium sorbaate,(a preservative), yellow #6, yellow #5 (tartrazine, red #40, blue#1.
Peeps are not soluble in most liquids, including water, acetone, acids, or bases.  One would think that they would be soluble in most liquids, because they are made of sugar, which is soluble in water.  However, they are soluble in phenol, which shows that peeps are actually a protein because they are made of gelatin.  Interestingly, however, the peep eyes are insoluble even in phenol.\

sources
http://www.peepresearch.org/solubility.html
http://www.bhg.com/holidays/easter/recipes/how-marshmallow-peeps-are-made/#page=14
http://dairyfreetoddler.blogspot.com/2010/10/halloween-treat-peeps.html