Place 1/3 cup morsels in a medium glass bowl, and microwave at high 1 minute or until morsels are almost melted, stirring until smooth. Let cool.
Add the softened cream cheese to melted morsels, and beat at medium speed of a mixer until smooth. Add 1 (16 oz.) package powdered sugar to cheese mixture; beat until well-blended.
Press mixture into a 6-inch square on heavy-duty plastic wrap, and cover with additional plastic wrap. Chill at least 1 hour.
Remove top sheet of plastic wrap; cut mixture into 48 squares. Roll each square into a ball, and place on wax paper. Roll half of balls in cocoa; roll remaining balls in 1/4 cup powdered sugar.
Place 2 tablespoons morsels in a heavy-duty zip-top plastic bag, and microwave at high 1 minute or until morsels are softened. Knead bag until smooth. Snip a tiny hole in corner of bag; drizzle chocolate over balls rolled in cocoa. Serve at room temperature.
Note: Store truffles in a single layer in an airtight container in freezer for up to 1 month. Let stand at room temperature 1 hour before serving.
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