In microwave, melt chocolate on high for 3 to 4 minutes or until almost melted. Stir after each minute. Remove from microwave and stir until completely melted.
Add cream cheese and beat until smooth.
Add sugar gradually and beat well. Add chocolate and vanilla and blend thoroughly. Refrigerate for about 1 hour.
Shape into 1-inch balls. Roll into nuts or coconut. Store in refrigerator. Makes 5 dozen. Enjoy!