Prepare cotton candy according to manufacturer's directions. When removing cotton candy floss from the machine, sprinkle with 1 tsp. bitz. Shape mixture into a ball; set aside.
Mix fondant and variegate until well blended. Top donut with 1 oz. of the glaze. Place on wire rack. Sprinkle with remaining 1 tsp. bitz. Top with cotton candy floss. Let stand until glaze is firm. (Cover remaining glaze for use with other donuts).