Place the finely chopped chocolate in a large (approximately 4 cup), glass measuring beaker. Set aside.
In a small to medium-sized saucepan, combine the milk, peppers, cinnamon stick, and sugar.
Use a paring knife to slice open the vanilla bean horizontally. With the back of the knife, scrape the vanilla beans into the saucepan and add the emptied pod as well.
Bring the mixture to a strong simmer and turn the heat to the lowest setting. Continue to let it simmer gently for about 15 minutes.
Place a fine mesh strainer over the glass beaker with the chocolate and strain the milk mixture.
Whisk until the chocolate has completely melted into the milk, about 1 minute.
Add the powdered sugar to the whipping cream and whisk until it's thick. Pour the hot chocolate into two mugs and add a dollop of the cream on top of each one.