In a large bowl, mix confectioners' sugar, coconut, vanilla and mashed potatoes together and roll into 1-inch balls. Refrigerate for 1 hour.
Chocolate Coating: Melt chocolate chips, chocolate squares and paraffin in a double boiler. Dip coconut balls in chocolate mixture and place on a cookie sheet lined with waxed or parchment paper. Sprinkle the tops with coconut if desired. Refrigerate candies.
Cook's Note: You can use 2 ounces of Wilton Candy Melts instead of paraffin.