In a large saucepan, combine the milk, heavy cream, cocoa powder, sugar, and vanilla extract.
Add the semi-sweet chocolate chips to the mixture and continue to stir.
Once the chocolate is fully incorporated and the mixture is hot but not boiling, remove from heat.
Whip the heavy cream in a separate bowl until soft peaks form.
Pour the hot chocolate into mugs, leaving space for toppings, and add a generous dollop of whipped cream.
Sprinkle colorful sprinkles and crushed peppermint candies over the whipped cream.
Top with a few marshmallows if desired, and serve immediately warm.
