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In a blender or food processor, combine chocolate, sugar, cinnamon and cayenne. Cover and blend or process until finely ground.
In a large saucepan, combine ground chocolate mixture and milk. Cook and stir over low heat for about 10 minutes or until chocolate melts. Remove saucepan from heat; stir in vanilla and almond extract.
Beat with a rotary beater, whisk or Mexican molinillo (wooden beater) until very frothy. Serve in mugs. If desired, top with whipped cream and/or sprinkle with additional ground cinnamon and/or cayenne.