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Question. About modeling chocolate
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Candy melts are an imitation product...you are definitely better off going with a better brand of chocolate but no, you do not need to use 'baking chocolate.' Just a decent brand of white chocolate will do.
First, make sure that you are giving it ample time to firm up. I pause 30-60 between all the stages of handling (after kneading, after rolling, after shaping, etc.). Second, make sure your work environment is cool (60-65 degrees F is best) because if it's not, chocolate can be very difficult to use. If you are already doing both of those things and after an hour or so, the modeling chocolate still does not firm up, consider kneading some more melted chocolate into the batch to help give it some more strength.