In a mixing bowl, add shredded coconut and powdered sugar. Combine with a fork. Then add the coconut oil and coconut milk. Mix again with a fork until the mixture starts to stick together. Use your hands to form balls (you'll end up with 15-20 balls depending on how large you make them). Place the balls on a plate lined with a baking sheet and place them in the fridge to harden for at least 15 minutes.
For the chocolate coating, heat the baking chocolate in a double boiler until melted, swirl it over the coconut balls with a fork.
Put the coconut balls back in the fridge again until the chocolate swirls harden (approx. 1/2 hour)! Enjoy!