Step 1: In a medium bowl, combine powdered sugar, cream cheese, peppermint extract, and vanilla extract. Mix until smooth and dough-like.
Step 2: Roll dough into 1-inch balls and flatten into patties about 1/4-inch thick. Place on parchment-lined baking sheet.
Step 3: Freeze patties for 10 minutes to firm up.
Step 4: In a microwave-safe bowl, melt chocolate chips with coconut oil in 30-second intervals, stirring until smooth.
Step 5: Dip each patty into melted chocolate, coating completely. Return to parchment paper.
Step 6: If desired, sprinkle with crushed candy canes while chocolate is still wet.
Step 7: Let chocolate set at room temperature for 5-10 minutes before serving.