Line cookie sheets with waxed paper. In 2-quart saucepan, melt peanut butter chips over low heat, stirring constantly. Remove from heat. Stir in frosting. Let stand until cool enough to handle, about 30 minutes.
Roll mixture into 1-inch balls; place on cookie sheet. Refrigerate 15 minutes. Meanwhile, melt candy melts as directed on package.
To coat each ball with candy, pierce ball with wooden skewer or toothpick; dip into melted candy, leaving small area around skewer uncoated. Place dipped ball on cookie sheet, pushing candy off skewer with tines of fork. (If desired, smooth skewer mark with finger.) If melted candy sets up while dipping, rewarm in microwave on LOW power. Let stand 5 minutes or until set.