2 1/2 cups flaked coconut
1 cup semisweet chocolate chips
1/2 cup evaporated milk
2 1/2 cups confectioners' sugar
1/3 cup chopped pecans
1/3 cup chopped maraschino cherries

Place coconut in a blender or food processor; cover and process until finely chopped. In a microwave or heavy saucepan, melt chocolate chips and milk. Remove from the heat; stir in confectioners' sugar, 1-1/4 cups coconut, pecans and cherries. Cover and refrigerate for 2 hours or until firm. Set remaining coconut aside.
Shape chocolate mixture into 1-in. balls; roll in reserved coconut. Place on waxed paper-lined baking sheets. Refrigerate for 2 hours or until firm. Store in an airtight container in the refrigerator.