In a mixing bowl, beat the softened cream cheese and confectioners' sugar until smooth and well combined.

Add the melted semi-sweet chocolate chips, milk, and vanilla extract to the cream cheese mixture.

Beat until the mixture is smooth and fully incorporated.

Gently fold in the colored miniature marshmallows, ensuring they are evenly distributed throughout the mixture.

Cover the bowl with plastic wrap and refrigerate for at least 30 minutes, or until the mixture is firm enough to handle.

Once chilled, roll the mixture into 1-1/2 inch balls using your hands.

Roll each ball in finely chopped flaked coconut, ensuring it is fully coated.

Place the coconut-covered snowballs on a plate or tray lined with parchment paper.

Store the creamy snowballs in the refrigerator until ready to serve.