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Put the chocolate in a pan with the milk. Gently heat, stirring until all the chocolate has melted. Continue heating until the milk is steaming, then remove from the heat and stir in the cream.
Divide the hot chocolate between 6 mugs, add sugar to taste and hang a candy cane on the edge of each. Pass the mugs round and let everyone stir their hot chocolate with their candy cane – letting as much of the sweet peppermint dissolve as they fancy.