For stovetop: In a large pot over medium heat, whisk together milk, cinnamon, vanilla extract, and nutmeg. Add chocolate chips. Stir until chocolate is melted. Cover and turn heat to low for 5 minutes.
For slow cooker: In a 4-quart slow cooker, whisk together milk, cinnamon, vanilla extract, and nutmeg. Add chocolate chips. Cover and cook on LOW setting for 2 to 3 hours, stirring every 15 to 20 minutes.
Serve with a dusting of cocoa powder.
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