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In a large bowl combine coconut, powdered sugar, and condensed milk until sticky.
Shape mixture into 1-inch balls and place on a tray lined with wax paper.
Chill balls in the refrigerator until firm.
Melt chocolate chips with shortening in microwave-safe bowl, stirring until smooth.
Dip each ball into chocolate, let excess drip, then place back on wax paper and refrigerate until set.