2 tablespoons butter
3 tablespoons water
1 teaspoon vanilla extract
2 cups sifted confectioners' sugar
1/2 cup dry powdered milk
3 cups coconut
Chocolate chips or chocolate coating

Melt butter in a 2-quart saucepan. Remove from heat. Add water and vanilla extract.

Mix confectioners' sugar and dry powdered milk. Add to butter mixture, about 1/2 cup at a time, mixing well after each addition. Stir in coconut. Drop teaspoonsful onto wax paper. Let stand until firm, about 10 minutes.

Melt chocolate chips or chocolate coating and swirl on top, then chill.

Makes 36.

NOTE: You can substitute other flavorings for the vanilla extract, and add food color to match - strawberry extract and pink food color, mint extract and green food color, etc.