Line a baking sheet with waxed paper; set aside. In a saucepan, combine the butterscotch chips, chocolate chips and cream cheese. Cook and stir over low heat until smooth. Remove from the heat; stir in marshmallows and nuts. Cool slightly.
Shape into 1-in. balls and roll in coconut. Place on prepared baking sheet. Refrigerate for 1 hour or until firm. Store in an airtight container in the refrigerator.