Preparation:

Step 1:
In a medium saucepan, combine the whole milk and heavy cream. Heat over medium-low heat, stirring occasionally, until the mixture is hot but not boiling. This ensures the milk is warmed evenly without scorching.

Step 2:
Once the milk mixture is hot, add the white chocolate chips. Stir continuously until the chocolate has completely melted and the mixture is smooth and creamy.

Step 3:
Stir in the vanilla extract and green food coloring. Adjust the amount of food coloring to achieve your desired shade of green, aiming for a vibrant, festive look.

Step 4:
Add the peppermint extract if you’re using it, and stir well to combine. The peppermint adds a refreshing holiday flavor that pairs beautifully with the rich chocolate.

Step 5:
Pour the hot chocolate into mugs. Top with a generous swirl of whipped cream, and then add mini marshmallows on top.

Step 6:
Sprinkle green sprinkles over the whipped cream and marshmallows. Add a handful of red and green M&Ms for a pop of color and extra sweetness.

Step 7:
Garnish each mug with a miniature candy cane for a festive touch, and drizzle chocolate sauce over the top if desired. Serve immediately while hot.