Combine first 3 ingredients in a large bowl, and stir well. Add butter and next 3 ingredients; stir well. Cover and chill 30 minutes. Shape into 1-inch balls, and chill an additional 30 minutes.
Place chocolate in top of a double boiler; bring water to a boil. Reduce heat to low; cook until chocolate melts, stirring frequently. Dip balls in melted chocolate, coating well. Place on wax paper to set. Store in an airtight container in refrigerator.