Cream together butter, milk, and flavoring. Add sugar and coloring. Drop by teaspoon onto wax paper. Place a toothpick into each mound. Freeze until firm (1 to 2 hours). Melt chocolate chips and paraffin together over hot water. When melted, dip candy mounds into chocolate liquid. Allow to dry by sticking toothpicks into cardboard. When dry, remove toothpicks.