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In the bowl of a mixer, beat peanut butter and butter.
Stir in vanilla.
Add powdered sugar and beat on low speed until smooth. This may take several minutes.
Roll into 1 inch balls and place in the freezer for at least 1 hour.
Place the chocolate and paraffin wax in a deep bowl and microwave for 10-15 seconds at a time, stirring between intervals, until melted. (you can also use a double boiler or chocolate melting pot to melt the chocolate).
Dip the chilled peanut butter balls three fourths of the way into the melted chocolate and place on a wax paper lined cookie sheet until chocolate is set.
Store in the fridge or the freezer.