01 - Line a baking sheet with parchment paper or wax paper and set aside.
02 - In a microwave-safe bowl, combine chocolate and coconut oil if using. Microwave in 20 to 30-second intervals, stirring thoroughly after each interval, until completely melted and smooth. Alternatively, melt over a double boiler, stirring constantly.
03 - Using a fork or dipping tool, carefully dip each marshmallow Peep into the melted chocolate. Turn to coat evenly on all sides, allowing excess chocolate to drip back into the bowl.
04 - Transfer each chocolate-covered Peep to the prepared baking sheet, spacing them apart so they don't touch.
05 - While chocolate remains wet, immediately sprinkle with decorations such as sprinkles, crushed nuts, or colored sugar if desired.
06 - Refrigerate for 20 to 30 minutes until chocolate is completely firm and set.
07 - Serve chilled or at room temperature. Store in an airtight container at cool room temperature or refrigerated.