Place the Peeps in a microwave-safe bowl with the coconut oil.
Microwave for 15-20 seconds, just enough to melt the Peeps.
Stir to combine the melted Peeps and oil.
Add 3 TB cornstarch and stir. When the playdough is cool enough to touch, finish kneading by hand.
Video
Notes
Prep Tips:
Safety - While this Peeps playdough is taste-safe, it is not intended to be consumed as a food item. Always supervise young children when using playdough or slime.
Yield - The above ingredients make one batch of playdough, or about one cup. We made four batches, so we would have one of each of the colors of Peeps.
If Playdough Is Sticky - Once the playdough is cool enough to handle, you can work in more cornstarch as needed to make it not sticky/oily. It will still be pretty stretchy like slime, but it should be able to keep its shape like playdough.
If Playdough Dries Out - As you're playing with the dough, it may start to become a little drier or less stretchy. Simply put the playdough in a microwave safe bowl and heat in the microwave for 5-10 seconds to soften it again. You can also work in a little more coconut oil. (Caution, the dough may be hot at first, so handle with care!)