Place the sugar, cocoa powder, and powdered milk into a blender (I use the Blendtec!).  Process for about one minute. 

Remove the wrapper from your candy canes.  Add the candy to the food processor (I break them into a few pieces first).  

Process again, this time for about 15 seconds.  If your mix still has large pieces of candy canes, process again for about 15 seconds. 

Your cocoa mix is ready to use and enjoy! 

To make a cup of peppermint hot chocolate, whisk 4 to 5 TBSP of mix into an 8-ounce mug of hot milk.  Add a few mini marshmallows on top if you want!