1. Bring first 5 ingredients to a simmer in a large saucepan over medium heat; cook 5 minutes, stirring constantly. Reduce heat to medium-low; cook 2 minutes or until mixture is smooth, stirring constantly.
2. Place chocolate in a medium bowl. Pour milk mixture over chocolate; stir until smooth. Transfer chocolate mixture to a fondue pot. Keep warm over a low flame.
Young Chefs can:
Help sift powdered sugar
Add measured sugar to saucepan
Older Chefs can:
Measure milk, and add to saucepan
Stir chocolate mixture until smooth