Cream together sugar and butter in a bowl; add milk. Stir in almond, coconut, and nuts; mix well.
Form candy into 1-inch balls. Place on waxed paper and refrigerate at least 3 hours.
Melt chocolate in top of double boiler, stirring well. Remove from heat but allow chocolate to remain over hot water. (If chocolate becomes too thick, return to heat for a minute or so to thin). With a toothpick, dip each ball in chocolate and place on waxed paper until set.