In a large bowl, combine condensed milk, shredded coconut, powdered sugar, margarine, and vanilla extract.

Mix well until all ingredients are thoroughly combined.

Refrigerate the mixture for 30 minutes to firm it up.

Take the chilled mixture and form it into small, round balls.

Place the formed balls on a baking sheet lined with parchment paper.

Freeze the coconut balls for 1 hour.

While the balls are freezing, prepare the chocolate coating.

In a double boiler or a heat-safe bowl set over a simmering pot of water, melt the chocolate chips and paraffin wax together.

Stir frequently until the chocolate and paraffin are completely melted and smooth.

Remove the frozen coconut balls from the freezer.

Using a toothpick, dip each ball into the melted chocolate mixture, ensuring it's fully coated.

Place the chocolate-covered bonbons on wax paper to set.

If there are any holes from the toothpick, drizzle a small amount of melted chocolate over them to seal them.

Allow the chocolate to harden completely before serving.