In a heavy saucepan, melt butter. Stir in marshmallows; cook and stir over low heat until melted.
Add food coloring to desired pigment.
Remove from the heat; stir in cereal and food coloring to desired pigment. Let cool just enough to handle.
With greased hands, shape into trees. (Work quickly as the cereal hardens quickly and becomes difficult to form.)
Add silver Dragees for decoration. Place on a serving tray; dust with confectioners' sugar.