1. Melt butter and margarine in a pot. Add the sugar, corn syrup, and vanilla. Boil for 5 minutes on med heat. 2. Layer the popcorn, candy canes and marshmallows in a large bowl or pot. 3. Pour the sauce over and mix well with a large spoon. It can be hard to stir this sticky goodness but it is worth it! You can add more popcorn till it is the consistency you want. 4. When you are done mixing, pour it onto wax paper and spread it out to cool. You can store it in gallon Ziploc bags.