Step 1

Combine evaporated milk, water and morsels in medium saucepan and warm over medium-high heat. Cook over medium-high heat, stirring frequently, until morsels are melted and the mixture is steaming. Remove from heat. Stir in peppermint extract.

Step 2

Whisk cocoa mixture until slightly frothy, then divide among 3 mugs. Top each with whipped cream and a sprinkling of crushed peppermint candies, if desired.