Mix dry ingredients:In a small saucepan, combine cocoa powder and sugar. Add water and whisk until it forms a smooth paste.
Heat the mixture:Place the saucepan over medium heat and stir continuously until the mixture begins to warm and bubble slightly.
Add milk:Gradually pour in the milk while whisking. Continue heating until the mixture is hot but not boiling.
Add chocolate and flavor:Stir in chocolate chips and vanilla extract (if using). Whisk until the chocolate melts completely and the drink is smooth and creamy.
Serve:Pour into a mug and top with whipped cream or marshmallows.
Enjoy:Sip your rich, homemade hot chocolate while it’s warm and comforting!