01 - Whisk together milk, cocoa powder, and sugar in a medium saucepan over medium heat until smooth and steaming, avoiding boiling.
02 - Add chocolate chips while whisking continuously until fully melted and the mixture becomes velvety.
03 - Remove from heat and stir in peppermint and vanilla extracts evenly.
04 - In a chilled bowl, whip heavy cream with powdered sugar until soft peaks form.
05 - Pour cocoa into serving mugs and top generously with whipped cream.
06 - Optionally, sprinkle crushed peppermint candies or place a mini candy cane on top. Serve immediately.