Beat cream cheese and butter together until completely smooth and pale, about 2-3 minutes, ensuring no lumps remain.
Gradually add powdered sugar while mixing on low, scraping the bowl. Texture should be thick but spreadable, like a dense frosting.
Fold in shredded coconut and vanilla with a spatula, tasting as you go. If the mixture seems too dry, add 1 tablespoon milk to achieve a malleable dough.
Portion teaspoon-sized balls and roll them into loose ovals between your palms, leaving a slightly rough surface so cinnamon adheres. The aroma will be creamy and coconut-forward.
Chill balls on a parchment-lined tray for 10-15 minutes to firm the centers slightly. They should hold shape but remain yielding when pressed.
Mix ground cinnamon with a little granulated sugar to your taste. Roll chilled balls in the cinnamon-sugar until evenly coated, gently pressing to mimic potato skin texture.
Place finished candies back on the tray and chill for at least 30 minutes before serving so flavors marry and the exterior sets. You’ll notice the coconut scent deepens after chilling.
Serve at cool room temperature. The ideal bite reveals a soft, creamy interior, a subtle chew from the coconut, and a warm cinnamon finish.