While your cake balls are chilling, get out a big ziploc bag. Put your candy canes (or other candy) in the bag and crush them into small pieces. My daughter had a good time with this step! Caution: do not make candy dust. The flavor will be there, but the texture and visual appeal just won't be the same. We used the flat side of a meat tenderizer, but a rolling pin works too. Put your crushed candy in a bowl and set aside.
Once the balls have chilled, melt your candy coating. Apparently, I am the world's worst candy melter. I ruin the candy more than I actually melt it. I could claim that I'm not used to the cooking temps of my new range, which is true, but mostly I'm a candy melting moron. I thought that melting on the stove would be easier when it came to dipping because I could keep it warm. In two words: EPIC FAIL. I burned the candy in the pan, it clumped and congealed and had to be thrown out. The particular candy I purchased had a special tray and instructions to melt in the microwave. Use them. :) Here is my failed candy.