Mix the Coconut Filling: In a medium bowl, combine the shredded coconut, sweetened condensed milk, and vanilla extract. Stir until the mixture is well combined and sticky.

Form the Balls: Using your hands, shape the coconut mixture into small balls, about 1 inch in diameter. Place the balls on a baking sheet lined with parchment paper.

Chill the Balls: Place the coconut balls in the refrigerator for about 30 minutes to firm up.

Melt the Chocolate: In a microwave-safe bowl, melt the chocolate chips and coconut oil (if using) in 30-second intervals, stirring in between until the chocolate is fully melted and smooth.

Dip the Coconut Balls: Using a fork or toothpick, dip each chilled coconut ball into the melted chocolate, making sure it's fully coated. Let the excess chocolate drip off before placing the chocolate-covered coconut balls back onto the parchment-lined baking sheet.

Set the Chocolate: Once all the coconut balls are coated in chocolate, place them back in the refrigerator for 15-20 minutes, or until the chocolate is set.

Serve: Serve the chocolate coconut balls chilled or at room temperature. Store any leftovers in an airtight container in the refrigerator.