HEAT sweetened condensed milk, chocolate hazelnut spread and white baking chocolate in medium saucepan over low heat, stirring occasionally, until smooth. Remove from heat.
POUR into medium bowl. Cover and chill 2 to 3 hours or until firm.
SHAPE into 36 1-inch balls. Combine cinnamon sugar and chili powder in small bowl. Roll 1 dozen truffles in cinnamon mixture. Roll 1 dozen in toasted coconut. Roll remaining 1 dozen in chopped hazelnuts. Chill 1 hour or until firm.
To toast coconut: Spread on a microwave-safe pan. Microwave on HIGH 1 to 2 minutes, tossing the coconut with a fork after each 30 second interval. Remove from pan immediately to avoid over-browning.