Start by gathering all your ingredients. Measure them out and set aside for easy access.

In a small saucepan, gently heat the milk and butter until warm but not boiling. Remove from heat and add the active dry yeast. Let it sit for about five minutes to activate.

In a large mixing bowl, combine the all-purpose flour, sugar, and salt.

After the yeast mixture has sat for five minutes, add it to the bowl with the dry ingredients along with the egg. Stir until a dough begins to form.

Transfer the dough onto a floured surface and knead for about five minutes. Place it in a lightly greased bowl and cover with a kitchen towel.

Let the dough rise in a warm place for about one hour or until it has doubled in size.

After the dough has risen, gently punch it down and roll it out on a floured surface into a rectangle, about 1/4 inch thick.

Sprinkle the cocoa powder and chocolate chips evenly over the rolled-out dough.

Starting from one end, roll the dough tightly into a log. Pinch the seam to seal it. Slice the log into individual rolls, about 1-2 inches thick.

Place the rolls into a greased baking dish, leaving some space between each. Cover and let them rise for an additional 30 minutes.

Preheat your oven to 350°F (175°C) and bake the rolls for about 20-25 minutes, or until golden.

While the rolls are baking, mix the powdered sugar, cream (or milk), and peppermint extract in a small bowl.

Once the rolls are done baking, allow them to cool slightly before frosting. Drizzle the peppermint frosting over the warm rolls and finish off with crushed candy canes.