2 tablespoons butter
3 tablespoons milk
1 teaspoon vanilla extract
2 cups sifted confectioners' sugar
1/2 cup powdered milk
3 cups coconut
1 (6 ounce) package chocolate chips

Melt butter in a 2-quart saucepan. Remove from heat and add the milk and vanilla extract.

Mix sugar and dry milk together and add to bitter mixture, one half at a time, beating well after each addition. Stir in coconut. Drop on wax paper lined cookie sheet by teaspoonsful.

Melt chocolate chips over hot water and swirl one teaspoon of chocolate over each piece of candy. Chill in refrigerator to set chocolate.

Makes 36.