Melt 16 oz mini marshmallows in large microwave safe bowl in 30 second bursts until it can be stirred smooth. Stir in 3 Tablespoons milk, set aside to cool a bit.
Meanwhile beat the 1 cup unsalted butter until it is smooth and creamy. Add the 1 cup shortening and beat until combined.
Add melted marshmallow mixture and mix well.
Stir in 4 cups powdered sugar, ¼ teaspoon salt, 2 Tablespoons meringue powder and 1½ teaspoons vanilla extract. Mix on low for several minutes.
Adjust the consistency with more milk or powdered sugar as needed.