Preheat oven to 325F. Prepare a bundt pan by brushing with butter and flouring, set aside. In the bowl of a standup mixer cream the butter, add the sugar and continue to beat until fluffy. Add the eggs, one at a time and mix well after each addition. Add the vanilla and peppermint extracts.
In a seperate large bowl whisk together the flour, baking powder, and salt. Add in the hot chocolate and mix well. Add to the butter mixture and alternate with the cream. Starting and ending with the flour. Pour into prepared pan. Bake for 1 hour or until cake tester comes out clean. Cool in pan for 10 min. and then remove to a cooling rack to completely cool.
For the icing, mix together the powdered sugar with the hot chocolate mix and the meringue powder. Add in 3 Tbsp. cream and the peppermint extract if using. Beat with an electric blender adding in more cream to desired consistency. Whip the icing until slightly fluffy. Pour over the cooled cake and sprinkle the top with candy canes. Save extra crushed candy cane for the plate.
Nutrition calculation is an estimation only. If you need nutritional calculations for medical reasons, please use a source that you trust.