In a large mixing bowl, whisk together the dry ingredients (flour, cocoa powder, baking powder, baking soda, sugar and salt).
In another mixing bowl, whisk together the wet ingredients (buttermilk, vanilla, egg and oil).
Add the wet ingredients to dry ingredients and whisk until smooth.
Fill the donut pan with batter. Tap the pan gently against the counter to release any air bubbles.
Bake donuts for 9 to 10 minutes.
Cool completely before glazing.
To make the glaze: melt butter in medium saucepan over a medium heat. Add PEEPS® Red Velvet Chicks Dipped in Cream Flavored Fudge and stirring constantly, cook until melted. Remove the saucepan from heat. Sift powder sugar over melted marshmallow mixture. Whisk in until smooth. Add milk as needed if the mixture is too thick.
Dip cooled donuts in glaze and set on cooling rack to set.