In a large mixing bowl, combine the powdered sugar, sweetened condensed milk, and softened butter. Mix until smooth and well combined.

Stir in the shredded coconut and chopped pecans until evenly distributed.

Using your hands or a small cookie scoop, roll the mixture into 1-inch balls. Place the balls on a baking sheet lined with parchment paper.

Freeze the balls for at least 30 minutes to firm up before dipping.

In a microwave-safe bowl, combine the chocolate chips and coconut oil (or shortening). Microwave in 30-second intervals, stirring after each, until smooth and melted.

Using a fork or a toothpick, dip each frozen candy ball into the melted chocolate, ensuring it’s fully coated. Tap off any excess chocolate and place the candy back on the parchment-lined baking sheet.

Allow the chocolate coating to harden at room temperature or refrigerate the candies for 15-20 minutes until fully set.

Once the chocolate is firm, transfer the candies to an airtight container for storage or arrange them on a serving platter.