Heat the Milk: In a medium saucepan, heat the milk over medium heat until warm but not boiling. Stir occasionally to prevent scorching.
Add Cocoa Powder and Sugar: Whisk in the cocoa powder and sugar until fully dissolved. Make sure there are no lumps for a smooth texture.
Melt the Chocolate Chips: Add the chocolate chips and stir continuously until they melt and blend into the mixture, creating a rich and creamy consistency.
Add Vanilla Extract: Stir in the vanilla extract for an extra layer of flavor.
Serve and Enjoy: Pour the hot chocolate into mugs and top with whipped cream, marshmallows, or a sprinkle of chocolate shavings for a festive touch. Serve immediately.