Preheat the oven to 375°F (190°C). Line a 12-count muffin pan with cupcake liners. This recipe makes about 14 cupcakes, so line another pan with 2 muffin liners if needed.

Boil the water in a small saucepan. Place the cocoa powder in a medium heatproof bowl, and pour the boiling water on top. Whisk until smooth and allow to cool to room temperature by placing in the refrigerator.

Whisk the flour, baking powder, and salt together in a medium bowl. Set aside.

In a large bowl, beat the butter and sugar together on medium-high speed until light and creamy, about 2 minutes.

Add the eggs, one at a time, beating until smooth. Scrape down the sides of the bowl as needed, and then beat in the vanilla extract.

Add the flour mixture and combine until just combined. Gradually add the cooled cocoa mixture until smooth, avoiding over-mixing.

Divide the cupcake batter between the muffin liners, filling each about 3/4 full.

Bake for 16–19 minutes, or until a toothpick inserted in the center comes out mostly clean. Remove from the oven and cool completely before frosting.

In a large bowl, beat the butter on medium-high speed until smooth and creamy, about 2 minutes.

Add 3 cups of confectioners’ sugar, heavy cream, peppermint extract, and food coloring (if using). Increase to high speed and beat for 3 minutes.

Adjust the frosting's consistency and flavor by adding more confectioners’ sugar or cream as needed.

Fold in the chocolate chips by hand using a rubber spatula.

Frost cooled cupcakes generously, noting that leftover frosting may be available.