It is similar to "making it rain", except that instead of throwing dollar bills, one is so rich that they are able to throw diamonds. In effect, making it snow. Diamonds can be substituted for a large quantity of cocaine.
The act of ripping up the small frilly things at the edge of a paper pulled out of a note book. Once in small enough pieces the person chooses a target and yells look its snowing. Said target turns toward a window and as they turn to confront you about it, you throw/blow all of the "snow" in their face. Most commonly done in high school classrooms.
Ricky: Damn it. In spanish class today Joey thought it would be funny if he would Make it Snow and half of it got in my mouth the rest went down my shirt. i'm going to get him back...