In a medium mixing bowl, beat the softened cream cheese with a spoon or hand mixer until completely smooth and creamy, with no lumps. This creamy base is what keeps the centers soft instead of crumbly.
Gradually add the powdered sugar to the cream cheese, about 1 cup at a time, stirring well after each addition. The mixture will start out loose and then turn into a very thick, smooth dough that pulls away from the sides of the bowl.
Stir in the shredded coconut until evenly distributed. The mixture should be thick but soft and a little sticky—firm enough to roll into small balls or ovals without falling apart. If it feels too sticky to handle, chill the bowl in the refrigerator for 15–20 minutes to firm up slightly.
Pour the ground cinnamon into a shallow bowl or small rimmed plate. This will be your “dirt” for coating the little potato-shaped candies and giving them that warm spice flavor.
Using clean hands or a small spoon, pinch off about 1 teaspoon of the coconut mixture at a time and roll it gently between your palms into a small oval or irregular ball, about the size of a grape or small walnut. Don’t worry about making them perfect—slight bumps and uneven shapes make them look more like real tiny potatoes.
Drop each shaped candy into the cinnamon and roll it around until completely coated on all sides. The outside should look like a little brown potato, with the white, creamy coconut center hidden inside.
Place the coated candies onto the foil-lined platter in a single layer. Continue shaping and rolling until all of the coconut mixture is used, adding a bit more cinnamon to the plate if it starts to look clumpy.
Refrigerate the platter of candies for at least 30 minutes before serving to help them firm up and hold their shape. Serve chilled or at cool room temperature. Store leftovers covered in the refrigerator for up to 1 week; the centers stay soft and creamy, and the cinnamon coating keeps their tiny “spud” look.