In a large bowl, mix the powdered sugar, desiccated coconut, and sweetened condensed milk until well combined.
Shape the mixture into 1-inch balls and place them on a wax paper-lined pan. Chill in the refrigerator for about 30 minutes until firm.
In a microwave-safe bowl, melt the chocolate chips and shortening together. Microwave in 30-second intervals, stirring occasionally until smooth.
Dip each coconut ball into the melted chocolate, allowing the excess to drip off. Place the chocolate-coated balls back on the wax paper and let them set.
Once set, store the coconut chocolate balls in the refrigerator.
Notes
For added flavor, consider rolling the coconut balls in chopped nuts or sprinkles before the chocolate sets.