In a mixing bowl, whisk together half of the sweetened condensed milk and the red Jell-O until well combined.
Add 1-1/2 cups of coconut to the red Jell-O mixture; stir to combine.
GREEN JELL-O BALLS:
In a separate bowl, whisk together the other half of the sweetened condensed milk and the green Jell-O until well combined.
Add 1-1/2 cups of the coconut to the green Jell-O mixture; stir to combine.
Roll the red and green mixtures into 1-tablespoon-sized balls.
Divide the remaining 1 cup coconut into two small bowls. Roll the red balls in one bowl, and the green balls in the other bowl of coconut for a snowy finish. Place the balls onto a rimmed baking sheet and refrigerate for 2 hours before serving.
Store the candy in an airtight container in the refrigerator for up to a week.