Line a baking sheet with parchment paper and set aside.
Mix together peanut butter, butter and vanilla in a medium-sized bowl with an electric mixer. Gradually add in 1 cup powdered sugar and mix until well combined. Add the last 1/2-3/4 cup powdered sugar and mix with your hands until all the sugar is gone. It should be a thick consistency. Add more powdered sugar if it's too sticky.
Shape dough into 1-inch balls and place on baking sheet. I like to use a small cookie scoop and then roll them in my hands. Freeze baking sheet for 15 minutes.
In a small bowl, melt chocolate chips in the microwave for 60 seconds or in a double broiler. Stir until melted and smooth.
Remove from the freezer and place a toothpick in the center (don't go too far down or it will be hard to get out). I like to use the longer toothpicks. Then dip 3/4 of the way into the chocolate. Allow the chocolate to drizzle off and then place back on the parchment paper. Let set for a minute and then gently remove the toothpick. Repeat.
Place truffles in the refrigerator for 10 minutes to allow the chocolate to harden. Best stored in the refrigerator.