Be sure cream cheese is softened (can microwave for 10-15 seconds to help).
Use an electric mixer with paddle attachment to beat cream cheese until fluffy.
Add powdered sugar 1 cup at a time until mixture is a thick dough. If dough is able to hold shape in a 1-inch ball, then you're good to go! If it's too sticky, then add more powdered sugar.
Roll balls in coconut. If you have trouble with it sticking, just press it in a bit or use a little bit of corn syrup.