Using the double broiler method, melt the chocolate over medium to low heat and add the milk, cream, sugar, and vanilla extract.
Continually stir until the chocolate comes to a simmer (not boil). Do not let the chocolate burn.
Once the chocolate begins to simmer lightly, check the thickness. It should be thicker than American Hot Chocolate, but not as thick as chocolate fondue.
If it's too thick, add a little bit more milk. Pour into a cup, top with whip cream, homemade marshmallows, edible lavender or chocolate shavings and serve immediately.
Marshmallows
Soak the gelatin in the 1/3 cup of cold water and set aside to thicken for 10-15 minutes.
In a large saucepan over low heat, dissolved the sugar in the 1.5 cups of water. Make sure you continually stir.
Add the thickened gelatin and stir until it's completely dissolved.
Bring the temperature up until the mixture comes to a boil.
Boil steadily for about 10-15 minutes - do not stir during this time.
Remove from the heat and pour in a kitchen aid mixer or use a hand held mixer and continue beating while adding the vanilla. Continue beating until the mixture is thick and white.
Add the mixture into a greased 9x13 pan and let the marshmallows set for about 2 hours. Cut into any shape you'd like and roll in crushed candy canes before serving.