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Place chopped chocolate and cream (and butter, if using) in a medium heat-proof bowl. Carefully microwave in 20-second intervals, stirring in between each interval, until melted. Alternatively, set it over a saucepan of simmering water, stirring occasionally. Stir in ¼ cup shredded coconut (and vanilla extract, if using). Cover the bowl and chill in the refrigerator for 4 hours or until firm.
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Place ⅓ cup shredded coconut in a small bowl. Take chocolate mixture out of the fridge. Using an ice cream scoop, spoon, or melon baller, scoop out small sections and form them into balls with your hands. Roll each ball in coconut and place on a baking sheet lined with parchment paper. Refrigerate until firm.
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Store truffles in the fridge in an airtight container for up to a week. Serve chilled.
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Truffles can be frozen for up to a month. To thaw, leave them in the fridge overnight.