In a large bowl, beat butter and confectioners’ sugar until smooth. Beat in milk and vanilla until well blended and mixture looks like softened butter. Fold in the coconut and walnuts.
With moist hands, shape 2 teaspoonfuls of coconut mixture around each cherry, forming a ball. Place on a waxed paper-lined baking sheet. Cover and refrigerate for 1 hour or until chilled.
In a microwave, melt chocolate chips and shortening; stir until smooth. Dip coated cherries into chocolate. Place on waxed paper; let stand until set. Store in an airtight container at room temperature for up to 1 month.