In Dutch oven over medium-high heat, heat all ingredients except popcorn to a simmer, stirring constantly. Stir in popcorn. Cook, stirring constantly, until popcorn is well coated, about 3 minutes; cool slightly.
Dip hands into cold water. Shape into 2 1/2-inch balls. Place on wax paper; cool completely. Wrap individually in plastic wrap or place in plastic bags and tie.