Cream shortening with 1 cup sugar until light and fluffy. Blend in flour mixture and champagne alternately, mixing until smooth.
Beat egg whites until stiff. Gradually beat in remaining 1/2 cup sugar, continuing to beat to stiff meringue.
Fold about half of meringue into batter, mixing thoroughly with whisk. Gently fold in remaining meringue.
Turn into 2 greased and floured 9-inch layer cake pans. Bake at 350 degrees F until toothpick inserted in center comes out clean, 25 to 30 minutes.
Cool in pan 10 minutes, then turn out onto wire racks to cool. While cake is baking, melt butter, marshmallows and wine in top of double boiler over boiling water.
Remove from heat and stir in coconut. Cool until thick enough to spread
Sift powdered sugar into top of double boiler. Add corn syrup and water. Stir over boiling water until smooth.
Blend in vanilla, salt and almond extract. Stir in food color. Keep frosting warm while using so it will spread .
When cake layers are cool, spread top of 1 with coconut filling and stack second on top. Spread 2/3 cup fondant frosting thinly and smoothly over top and sides of cake, sealing any crumbs.
Pour about 1/2 cup additional frosting over top of cake and spread quickly to smooth. Cover sides of cake with remaining frosting.
Dip marshmallow quarters in remaining frosting to coat both sides and set randomly over top and sides of cake.
