In a medium bowl, mix together the peanut butter, softened butter, and vanilla extract until well combined. Gradually add in the powdered sugar, mixing until the mixture is smooth and holds together. The consistency should be similar to cookie dough.

Line a baking sheet with parchment paper. Using a spoon or a small cookie scoop, form the peanut butter mixture into 1-inch balls and place them on the prepared baking sheet. If the mixture is too soft to handle, you can chill it in the refrigerator for 20-30 minutes to firm up.

Place the baking sheet with the peanut butter balls in the freezer for about 15-20 minutes to harden. This will make them easier to dip into the chocolate.

Combine the chocolate chips and coconut oil or shortening in a microwave-safe bowl. Microwave in 30-second intervals, stirring in between, until the chocolate is completely melted and smooth.

Using a fork or a dipping tool, dip each peanut butter ball into the melted chocolate to coat it completely. Gently tap off any excess chocolate. Place the coated balls back on the parchment-lined baking sheet.

Refrigerate the chocolate-coated balls until the chocolate is firm, about 30 minutes to 1 hour.

Once the chocolate has set, the peanut butter balls are ready to serve. Store any leftovers in an airtight container in the refrigerator for up to two weeks.