Step 1: In a large bowl, combine the creamy peanut butter, melted butter, 1½ cups of sifted powdered sugar, and vanilla extract. Mix until well combined and a dough-like consistency forms.
Step 2: If the mixture is too sticky, add the remaining ½ cup of powdered sugar, a little at a time, until the dough is firm enough to roll.
Step 3: Roll the mixture into 1-inch balls and place them on a baking sheet lined with parchment paper. Refrigerate for at least 15-20 minutes to firm up.
Step 4: While the balls are chilling, melt the chocolate. In a microwave-safe bowl, combine the chocolate chips and coconut oil (if using). Microwave in 30-second intervals, stirring well after each, until smooth and fully melted.
Step 5: Dip each chilled peanut butter snowball into the melted chocolate, allowing any excess to drip off. Use a fork or a dipping tool for easier handling. Return them to the parchment-lined baking sheet.
Step 6: Place the chocolate-coated snowballs back in the refrigerator for another 10-15 minutes, or until the chocolate coating has set.
Step 7: Once the chocolate is set, lightly warm the caramel sauce if it's too thick. Drizzle the caramel over the chocolate peanut butter snowballs. Serve immediately or store in the refrigerator.