You can make these up to 1 week in advance of giving them as a gift. Keep them in the fridge in an airtight container until they're ready to give.
Break half the chocolate into small squares and place in a bowl over a pan of simmering water with the butter and allow to melt.
Blitz the Madeira Cake in a food processor to form crumbs and mix into the melted chocolate and butter mixture.
When cool enough to handle, take small blobs of the mixture and roll between the palms of your hands to form balls. Put onto a tray; chill for 1 hour.
When the balls have hardened, melt the remaining chocolate. Dip each ball into the melted chocolate, allow any excess to drip off, then roll in desiccated coconut. Put back onto a clean tray and chill again for 1 hour.
Put snowballs into jars, thread ribbons through labels and tie round the jars.
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