Peppermint Candy Cupcakes

3 oz. semisweet chocolate
2 cups flour
1 cup granulated sugar
1 tbsp. baking powder
3/4 lb. butter, room temperature
3/4 tsp. salt
1 1/4 cups + 2 tbsp. milk
2 eggs
1/2 tsp. vanilla extract
3/4 cup chocolate chips
8 peppermint candies
2 1/4 cups confectioners sugar

Heat oven to 350 F.  Melt chocolate. Line 16 muffin cups with paper liners. Combine flour, sugar, baking powder and salt. Add 1/4 lb. butter to flour. With mixer at medium speed, gradually beat in 1 1/4 cups milk until smooth. Beat eggs with vanilla and gradually add to batter, beating until smooth. Pour into muffin pan and bake 25 minutes or until toothpick inserted in center comes out clean. Cool on racks. Crush peppermints. Beat remaining butter until creamy, gradually adding confectioners sugar. Add 1 to 2 tsp. milk to make frosting creamy. Stir in crushed peppermints. Spread on top of cooled cupcakes.