5 ounces condensed milk
1 cup powdered sugar
1 teaspoon vanilla extract
1 (14-ounce) package sweetened flaked coconut
3 cups semisweet chocolate chips
In a large bowl, combine the condensed milk, powdered sugar, and vanilla extract. Stir well until thoroughly incorporated and smooth. Add the coconut and stir well to combine.
With a tablespoon, scoop out portions of the candy mixture onto a baking sheet. With wet hands roll the candies into rounds. Refrigerate until firm, about 1 hour.
In the top of a double boiler or metal bowl set over a pot of simmering water, melt the chocolate chips. Pour the chocolate into a shallow bowl and, using 2 forks or toothpicks, dip the coconut balls into the chocolate and roll to coat completely. Shake off the excess, and place on a rack set over a baking sheet covered with waxed paper. Repeat with the remaining candies and let air dry, or refrigerate to harden.