In a large bowl, combine the milk powder, peanut butter, honey and vanilla. Shape into 1-in. balls. Place on a waxed paper-lined baking sheet. Let stand, uncovered, for 30 minutes.
In a microwave-safe bowl, melt candy coating and shortening at 70% power for 1-2 minutes; stir until smooth. If desired, tint some of the candy coating with food coloring. Dip balls into coating, then roll in coconut. Return to baking sheet; let stand until set. Store in an airtight container at room temperature.