In a small saucepan, place the water and diced potatoes, and bring to a boil. Reduce heat to low and simmer for 15 minutes or until the potatoes are tender. Drain well, reserve the cooking liquid for use in soups or breads, and transfer the cooked potatoes to a medium size bowl. Using a potato masher, mash the potatoes to a very smooth consistency, and place in the refrigerator to cool. When the potatoes are cool, measure out 1/3 C., and set any extra mashed potatoes aside.
In a medium bowl, place the 1/3 cups mashed potatoes, Veganized Powdered Sugar, and coconut, and stir well to combine. Cover and chill the mixture for 15 minutes. Shape the chilled coconut mixture into 1-inch balls, place them on a plate, and chill an additional 45-50 minutes or until firm. In a double boiler, place the chocolate chips and oil, place over low heat, and cook until the chips start to melt. Stir the chocolate chips until smooth. Reduce the heat to the lowest setting to keep the mixture from scorching.
Remove the chilled coconut candies from the refrigerator. Place a small rack on top of a cookie sheet and set aside. To coat the candies: place one coconut candy ball on a fork, hold the fork over the double boiler of melted chocolate, and using a spoon, drizzle the melted chocolate over the top to thoroughly coat the coconut ball. Carefully transfer the chocolate covered candy to the prepared rack. Repeat the chocolate coating procedure for the remaining coconut candy balls.
When all of the candy has been coated with the chocolate, place them in the refrigerator for 5 minutes to help set the chocolate. The candies can be placed in an airtight container with waxed paper between the layers, and stored in the refrigerator or freezer. Place the candies in small paper cups and allow them to come to room temperature before serving.
Yield: 2 Dozen