In the top of a double boiler, heat chocolate, stirring occasionally, until chocolate is melted and smooth.

In a mixing bowl, combine the potato, salt and vanilla and the coconut. Sift the confectioners sugar over potato, stirring and adding about 1 cup at a time. Mixture will liquefy when first sugar is added then gradually begin to thicken.

When it becomes the consistency of stiff dough, knead it even though not all the sugar has been added.

After kneading, cover with a damp cloth and chill until a small spoonful can be rolled into a ball. Shape in small 1/2 inch balls. Dip balls in melted chocolate then roll in peanuts or coconut.