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In a saucepan, mix together the sugar and cocoa powder.
Add the water and bring the mixture to a boil, stirring constantly.
Remove from the heat, add the peppermint extract, and allow it to cool to room temperature.
Store the syrup in an airtight container in the fridge.
Pour the syrup into a coffee mug
Add the coffee.
Add the steamed milk.
Top with whipped cream and a drizzle of peppermint chocolate syrup, if desired.