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Combine 1/4 cup half-and-half (or cream), vanilla baking pieces (or chopped candy coating), stick cinnamon and nutmeg in a medium saucepan; whisk over low heat until candy is melted. Remove stick cinnamon.
Add the remaining 2 3/4 cups half-and-half (or cream). Whisk until heated through. Remove from heat. Stir in vanilla and almond extract. Serve warm in cups or mugs; sprinkle with cinnamon, if desired.