In a large bowl, combine the shredded coconut, powdered sugar, softened butter, sweetened condensed milk, and vanilla extract (if using). Mix until everything is well incorporated and forms a sticky dough.
Cover the bowl with plastic wrap and refrigerate for 15 minutes to firm up the mixture.
Using a teaspoon, scoop out portions of the mixture and roll them into bite-sized balls.
Roll the balls in extra shredded coconut, cocoa powder, or sprinkles for a fun touch.
Place the balls on a parchment-lined tray and chill for another 10-15 minutes to set.
Store in an airtight container in the fridge for up to a week.
