In a saucepan over medium heat, warm the milk, heavy cream, and sugar until the mixture is hot but not boiling. Heat it slowly enough that the sugar fully dissolves while preventing any scalding around the edges. Gentle steaming and small bubbles forming at the sides indicate the mixture is ready for the next step.
Add the white chocolate chips and whisk until they melt completely and the cocoa becomes smooth. Continue whisking to ensure the chocolate incorporates fully into the hot milk, creating a silky base without lumps or unmelted bits.
Stir in the peppermint extract. Mixing it at this stage allows the flavor to disperse evenly throughout the warm cocoa without evaporating too quickly. The aroma should become noticeably minty but balanced with the sweetness of the white chocolate.
Add green food coloring gradually until a soft mint green shade is reached. Stir thoroughly between drops so you can judge the color accurately and avoid over-tinting. The goal is a gentle evergreen tone that highlights the festive theme while keeping the drink visually smooth.
Pour the cocoa into a mug or clear glass. If using a clear vessel, the pastel green color will be especially visible, giving the drink a seasonal, decorative appearance. Pour slowly to prevent foam or bubbles from forming on top.