1. Pour the hot coffee into a large saucepan and stir in the baking chocolate squares. Heat over low heat for 5 minutes or until the chocolate is melted, stirring occasionally.
2. Pour the milk into a microwave-safe container and heat on high for 1 to 2 minutes, or until hot. (You can also heat the milk in another saucepan over medium-high heat until hot, but not boiling.)
3. Add milk and extract to the coffee and chocolate mixture, and stir until well blended.
4. Carefully ladle into 8 mugs. Garnish each serving with a peppermint stick.