01 - Line a baking sheet with parchment or wax paper and set aside for dipped candies.
02 - Combine chocolate chips and coconut oil in a microwave-safe bowl. Microwave in 30-second intervals, stirring thoroughly after each interval, until completely melted and smooth. Alternatively, melt using a double boiler over simmering water.
03 - Insert a skewer or toothpick into the base of each Peep candy to create a handle for easier dipping.
04 - Dip each Peep into the melted chocolate, turning to ensure complete coverage. Lift and allow excess chocolate to drip back into the bowl.
05 - Place coated Peeps on the prepared baking sheet. Immediately sprinkle with decorations while chocolate is still wet, if desired.
06 - Allow chocolate to harden at room temperature for approximately 30 minutes, or refrigerate for 10 to 15 minutes until firm.
07 - Remove skewers or toothpicks carefully. Serve immediately or store in an airtight container for up to 5 days.