1. In large mixing bowl, combine peanut butter, butter and confectioners' sugar. Using wooden spoon, mix until smooth and well blended.

2. For large chestnuts; Shape 1 slightly rounded tablespoon into a ball; flatten one side to resemble a chestnut. Refrigerate several hours or overnight. Makes about 40.

3. For small chestnuts; Shape 1 slightly rounded teaspoon into a ball. Refrigerate several hours or overnight. Makes about 80 chestnuts.

4. Next day; In top of double boiler, combine chocolate and paraffin. Place over hot, not boiling, water, stirring occasionally, until chocolate and paraffin are melted. Remove from hot water.

5. Using a fork, dip cold chestnuts into chocolate mixture just until two thirds of the chestnut is covered. Place on rack. When chocolate coating is firm, store, covered, in a cool, dry place. If desired, freeze for later use.