Add milk, heavy cream, white candy melts, semi-sweet chocolate chips, and vanilla to a medium-sized pot. Cook on medium heat, stirring until the milk starts to bubble and the chocolate is completely melted.
Reduce the heat to low. Add the vanilla and red food dye. Stir until well combined and your desired depth of color has been achieved.
Pour the hot chocolate into two mugs and top with whipped cream and your choice of toppings.