In a large bowl, combine coconut, powdered sugar, sweetened condensed milk, and melted butter. Mix well. Use a 1 oz ice cream style scoop to scoop balls on parchment paper. (You could use hands and roll between palms into teaspoon-sized (or a little larger)
Place balls in the freezer for an hour or two until hardened.
In the top of a double boiler or microwave, melt the 3/4 of milk chocolate chips.
Dip each frozen coconut ball into the melted chocolate and shake off excess chocolate.
Place the dipped truffles on the sheet into the refrigerator or freezer for 15 minutes or until the chocolate is set.
Melt the remaining chocolate chips according to package directions.
Place in a small baggie and cut a small hole in one corner.