Line a baking sheet with parchment paper; set aside.
In a medium saucepan, over medium heat, combine the peanut butter, butter, vanilla and 1 cup of the powdered sugar. Heat, stirring constantly, until the mixture is completely melted and just starts to bubble. Remove from heat.
Add the remaining ¼ cup of powdered sugar, stirring until completely combined. Turn out the peanut butter mixture onto the prepared pan with parchment paper. Using a butter knife, smooth out the dough flat even thickness of about ½-inch. This will help the mixture cool faster and make it easier to divide up when forming the eggs. Set aside and let cool to room temp.
Divide the dough into ten 2-inch balls. Shape the dough into flattened ovals, to mimic the shape of an egg, placing each egg back on the lined baking sheet. Place the sheet pan in the freezer for one hour, or until hard.
Melt chocolate chips in the microwave. Heat in 30-second intervals, stirring in between intervals, until the chocolate is melted and smooth.
Using your fingers (try not to lick them!), tongs or two forks, roll each egg into the chocolate and place them back on the lined baking sheet. When all the eggs are dipped and all the chocolate is gone, place the sheet pan back into the freezer for the chocolate to set; about 1 to 2 hours.
Store the peanut butter eggs in the refrigerator or the freezer.
Notes
You can chill dough in the fridge before rolling into eggs if you don't want to wait as long. Chilling the dough makes it easier to handle.
If you have leftover chocolate you can drizzle more on top of the eggs for decoration, whatever you do with it, DON'T WASTE IT!
The peanut butter eggs become slightly soft when stored in the refrigerator. Unless you will serving to friends and family right away, I recommend that you keep the eggs in the freezer and thaw at least 15-minutes before eating.
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