Stir together melted coating and desired amount of food coloring paste; add cereal and, if desired, orange oil flavoring, stirring to combine.
Drop mixture by heaping tablespoonfuls onto wax paper; shape each spoonful into a bird's nest. Gently make a small indentation in center of each nest; fill with 3 jelly beans. Let dry completely.
Note: Melt coating in the microwave for 3 minutes at 50%, stirring once each minute.