Leave the cream cheese at room temperature for about 30 minutes, until soft but not warm or runny.
Beat the softened cream cheese in a medium bowl for 45 to 60 seconds, until smooth and free of lumps.
Add the powdered sugar in three portions, mixing on low after each addition. Mix in the vanilla with the final portion.
Fold 2 cups shredded coconut into the mixture with a spatula until evenly combined.
Cover the bowl and refrigerate the mixture for 30 to 40 minutes, or until firm enough to scoop.
Scoop about 1 tablespoon of mixture for each ball and place the portions on a parchment-lined tray.
Roll each portion gently between your palms for 5 to 8 seconds, until smooth and round.
Place 1 cup shredded coconut in a shallow bowl. Roll each ball in the coconut until lightly coated.
Refrigerate the finished balls for 30 minutes, or until firm.
Let the balls sit for about 5 minutes before serving. Serve chilled.
