PLACE butter and marshmallows in large microwaveable bowl. Microwave on HIGH 1-1/2 to 2 minutes or until marshmallows are puffed. Add dry jelly powder; stir until well blended.
POUR over combined popcorn and peanuts in large bowl; stir until evenly coated. Shape into 14 balls with greased hands, using about 1 cup of the popcorn mixture for each ball.
ADD decorations as desired.