Peppermint Hot Chocolate

1. For the Whipped Cream: Place the cream, powdered sugar in a chilled mixing bowl, and beat on high speed until soft peaks form. Refrigerate the whipped cream.
2. For the Hot Chocolate: Place the chocolate in a 2 1/2-quart metal mixing bowl. Place the bowl over (but not touching) a pan of simmering water. (The bowl will seem large, but you need the space to mix in the milk.) Stir the chocolate occasionally with a rubber spatula.
3. In the meantime, pour the milk into a heavy-bottomed 2-quart saucepan. Whisk in the sugar and cook over medium heat, stirring occasionally, until the milk begins to simmer and bubbles form around the edge. Turn off the heat.
4. When the chocolate has melted, reduce the heat so the water under the pan barely simmers. Pour the 1/3 cup of boiling water into the melted chocolate, and whisk or beat with an electric mixer until smooth. Dribble in the hot milk mixture as you whisk. When the ingredients are well incorporated, remove the bowl from the water bath, and stir in the vanilla and peppermint.
5. To serve, ladle the hot chocolate into mugs, and top with a generous dollop of the whipped cream. Garnish with crushed candy canes and chocolate shavings.