Heat candy coating and half-and-half in heavy 3-quart saucepan over low heat, stirring constantly, until coating is melted and mixture is smooth; remove from heat. Stir in liqueur and cinnamon.
Pour into fondue pot or chafing dish. Keep warm over low flame. To serve, spear Dippers with fondue forks and dip into fondue. If fondue becomes too thick, stir in small amount of half-and-half.