Just put regular granulated sugar in the blender. You don't need to add starch if you use it right away. If you want, you can sub arrowroot for the corn starch. My kids have allergies too.
When we were in Peace Corps we had a friend who made powdered sugar for her catering business and would let us run our sugar through it too. Now hers had never been adulterated by coffee because real ground coffee was unheard of....