In a large mixing bowl, combine the powdered sugar, shredded coconut, and softened butter. Use a hand mixer or wooden spoon to mix until the ingredients are crumbly and well combined.

Add 2 tablespoons of coconut milk (or heavy cream) and the vanilla extract (and coconut extract, if using). Mix until the dough comes together. If the mixture is too dry, add an additional tablespoon of coconut milk, one teaspoon at a time, until the dough holds its shape when pressed.

Scoop out about 1 tablespoon of dough and roll it into a smooth ball using your hands. Repeat with the remaining dough.

Place the shaped truffles on a parchment-lined baking sheet. If the dough feels sticky, lightly dust your hands with powdered sugar to make rolling easier.

If the truffles are too soft to handle, place the baking sheet in the refrigerator for 10-15 minutes to firm them up. This step is optional but can make coating easier.

In a microwave-safe bowl, combine the chopped chocolate and coconut oil (if using).

Microwave in 30-second intervals, stirring after each, until the chocolate is completely melted and smooth. Alternatively, melt the chocolate using a double boiler.

Using a fork or dipping tool, dip each truffle into the melted chocolate, ensuring it’s fully coated. Let any excess chocolate drip off.

Place the coated truffles back onto the parchment-lined baking sheet. If desired, sprinkle with toasted shredded coconut or other toppings while the chocolate is still wet.

Allow the truffles to sit at room temperature until the chocolate hardens, or place them in the refrigerator for 10-15 minutes to speed up the process.

Once set, transfer the truffles to an airtight container. Store at room temperature for up to 3 days or in the refrigerator for up to a week. Serve and enjoy these creamy, indulgent treats!