In a large bowl with heavy-duty electric mixer, or by hand with a wooden spoon, beat peanut butter, corn syrup, dry milk and vanilla until well blended. With mixer on low speed (or with a spoon), gradually beat in as much confectioners' sugar as the mixer can handle. Scrape mixture onto work surface and knead in any remaining sugar. For each mouse, break off enough mixture to roll into a 1-inch ball for the body, then enough to roll into a 1/2-inch ball for the head. Press small ball on to large ball, then lightly pinch head to form a rounded nose. Break off enough mixture to form two small balls for ears. Press each ball between thumb and forefinger to flatten. Press onto head. Repeat with remaining mixture. Dip end of a toothpick in water. Shake off excess. Touch toothpick to a colored nonpareil (it will stick). Press onto end of nose. Repeat with 2 more nonpareils for eyes. Cut a length of licorice lace and insert into body for tail.
Recipe courtesy of Elizabeth Alston, Food Editor, Woman's Day Magazine