Line one baking sheet with waxed paper. In large bowl, mix icing sugar, peanut butter, coconut and 1/3 cup butter together until well blended. Gently fold in kellogg's Rice Krispies cereal until well coated. Form into 1" balls. To make the rolling of the balls easier, use lightly dampened hands. Refridgerale on baking sheet 30 minutes.

To make chocolate dip: in medium saucepan, over low heat melt chocolate chips, remaining butter and water together. If mixture is a bit thick for dipping add 1 to 2 tablespoons more hot water.

Using two forks, drop a couple peanut butter balls in the chocolate mixture. Roll balls around in chocolate mixture to coat in chocolate. Chill on waxed paper-lined baking sheet until chocolate is set. Other serving suggestions: peanut butter balls can be served plain or lightly drizzled with chocolate dip. To decorate balls with chocolate, use tip of spoon to drizzle over balls.