In top of double boiler, melt paraffin. When it is all melted, add chocolate chips and 1/4 lb margarine. Stir until melted. Set aside 1 cup powdered sugar.
Mix, coconut, nuts, chocolate chips, remaining powdered sugar. Melt remaining margarine and pour over dry mixture. Add condensed milk and vanilla. Mix all of these ingredients well.
Form into small balls and roll in powdered sugar. Place on lined cookie sheet and set in refrigerator for 10 to 15 minutes. Dip balls into melted chocolate mixture and put on wax paper lined cookie sheet.
Cajun Country -- New Iberia, Louisiana