Sift together confectioners sugar and milk powder. Set aside. Melt butter in microwave and stir in water and vanilla.

Add butter mixture to dry ingredients and mix until smooth.

Stir coconut into the mixture and stir until everything is fully incorporated.

Roll small pieces of coconut mixture into 1" balls and place on a baking sheet covered with parchment paper. Place in the fridge for about 20 minutes to cool and harden a bit.

Place chocolate chips and coconut oil in microwave safe bowl and heat in 20 second increments. It takes about 2 minutes for the chocolate to become fully melted.

Take coconut balls out of the fridge and roll in the chocolate.

Place 1/2 cup shredded coconut on a plate and coat the chocolate bites with coconut. Decorate with sprinkles and place back in the fridge for 10 minutes until hardened. After the coconut bites have hardened, place in colorful guacamole bowls and serve to the party guests.

See how to throw your own Shopkins Birthday Party complete with a Shopkins Bean Bag Party Game and Mini Shopkins Piñatas!