In a large bowl, mix cream cheese with peanut butter and powdered sugar until combined. Fold in the M&Ms.
Roll the mixture into balls and set onto a plate. Place chocolate chips into a microwave-safe bowl, and heat in the microwave in 30-second intervals, stirring well until it is fully melted and smooth.
Coat each truffle in the chocolate and set onto a plate. Let sit until it is completely set.