Add one inch of cold water to a small saucepan and place a metal or glass bowl on top of the saucepan so it sits on it. This is our double boiler.
Add the chocolate chips, heavy cream, and vanilla extract to the bowl. Turn the stove on low heat, do not go higher than medium heat because the chocolate will burn.
Once the chocolate has melted, turn off the stove and let the mixture come to room temperature. Then cover the bowl with plastic wrap and place it in the refrigerator for 1 hour to harden.
After 1 hour, use a small ice cream scoop or a tablespoon and scoop out some of the truffle mixture. Roll the mixture in the palms of your hands to shape them into balls. Place them on a parchment lined cookie sheet and return the cookie sheet to the refrigerator for another 30 minutes.
While the truffles harden, melt chocolate in a double boiler or a microwave safe bowl. Take one of the harden truffles and dip it in the chocolate. Place the truffle back on the cookie sheet and sprinkle with green sprinkles, red sprinkles, or your favorite festive sprinkles.
Let the truffles harden one more time in the refrigerator and then serve.