In a medium sized mixing bowl, combine powdered sugar, peanut butter and butter; mix well.
Line a large cookie sheet with wax paper and shape dough into 1" balls; place balls on wax paper.
Chill dough balls in the fridge for about 30 minutes or until firm.
In another medium sized bowl, melt candy coating according to directions on package (I usually microwave mine for 30-second intervals, stirring each time, until completely melted and smooth).
Dip balls in candy coating (roll around so that they are completely covered) and place on wax paper. If you want, garnish tops with sugar sprinkles (do this quickly before the candy coating hardens).
Place balls back into the fridge to set up.
Notes
For dipping, one of our tricks is to use a plastic fork and break off the middle tines. Just leaving the two on each end (it kind of looks like a hand doing a rock-on sign! Ha ha!).Drop the frozen ball into the white chocolate and then carefully lift out with the fork invention, tapping the side of the bowl to let the excess chocolate drip off.