Step 1

Stir together the sugar and water in a medium saucepan and heat over medium.

Step 2

After 2 minutes, add in milk. Bring to a simmer.

Step 3

Add in chocolate chips, and remove from heat. Stir until chocolate chips are completely incorporated.

Step 4

Add vanilla extract, and stir until smooth.

Step 5

Serve warm or cold. Keep refrigerated for up to 2 weeks (or freeze for a month or so).