Preheat oven to 375° F. Spray muffin pan with non-stick cooking spray.
In a bowl, mix sugar, flour and cinnamon.
Seperate crescent dough into 16 triangles. Dip 1 marshmallow into the melted butter, then roll in the sugar mixture. Place coated marshmallow at the tip of the crescent triangle (small end) and roll dough completely around marshmallow working your way to the large end of the pastry. Seal seems tightly then dip bottom of dough round into melted butter and place into muffin pan (butter side down).
Bake 12-15 minutes or until golden brown. Let cool for 1 minute. Remove puffs from muffin pan onto wire cooling racks set over waxed or parchment paper.
How to make glaze: Mix powdered sugar, vanilla and milk. Add more milk if needed to get desired consistency.
Drizzle glaze over warm rolls. Sprinkle with nuts (optional).
Serve warm.