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In a large heavy-bottomed saucepan, combine the chocolate and cream over low heat. Stir occasionally until the chocolate is completely melted. Whisk in the milk, cinnamon and cayenne. Raise the heat to medium and continue cooking until very hot, but don't let the mixture come to a boil.
Remove from the heat. In a small bowl, combine the sugar and the cocoa. Add about 1 cup of the hot milk mixture and whisk until a smooth paste is formed.
Whisk the cocoa paste back into the pot with the hot milk mixture and whisk until smooth. Pour into mugs and serve hot with whipped cream or marshmallows if desired.