1In chilled small bowl, mix whipping cream, powdered sugar, cocoa and 1/4 teaspoon peppermint extract with electric mixer on high speed until stiff peaks form. Cover and refrigerate until serving time.
2In 2-quart saucepan, heat milk just to simmering over medium-low heat - do not boil. Reduce heat to low. Add baking chips; stir constantly with wire whisk until melted and smooth. Stir in 1/2 teaspoon peppermint extract.
3Pour hot chocolate into cups or mugs. Top each serving with whipped cream. Garnish with candy cane for stirring, or sprinkle with crushed candies.