HEAT evaporated milk, morsels and water in medium, heavy-duty saucepan over medium-low heat, stirring frequently, until hot (do not boil). Remove from heat. Stir in liqueur and vanilla extract.
POUR into ten 4-ounce demitasse cups or five mugs. Top with whipped cream and dusting of cocoa.
VARIATION: Substitute NESTLÉ® CARNATION® Evaporated Lowfat 2% Milk for the regular evaporated milk.