In a 2-quart saucepan over medium heat, combine the sugar, cornstarch, and salt. With a whisk, stir in the milk and chocolate. NOTE: I prefer to use chocolate shavings or grated chocolate* so it melts quick and even. Stir this mixture until it becomes thick and bubbly, and then cook for 2 minutes more, continuing to stir constantly. Remove the pan from the heat.
In a small bowl, combine 1/4 cup of the hot chocolate mixture to the beaten egg yolks, stirring constantly while adding.
Add another 1/4 cup of the hot chocolate mixture to the egg yolks and continue to stir. This will bring the yolks up in temperature so you do not end up with scrambled egg pudding when you add the yolks to the hot liquid.
Pour chocolate/egg yolk mixture into the saucepan and return it to the heat. Add the cinnamon and red chile powder. Stir constantly in a figure 8 movement for another two minutes so the yolks can combine and cook into the pudding. NOTE: This needs to cook for another two minutes.
Remove the pan from the heat and add the butter and vanilla extract, mixing well. Pour the pudding into small serving dishes or into a large bowl to cool. Cover the pudding/puddings with plastic wrap, pushing it down so the plastic wrap touches the top of the pudding. NOTE: This will help keep a skin from forming. Chill thoroughly before serving.
Makes 4 to 5 servings.
Chocolate Pudding with Cinnamon and Chile Recipe: https://whatscookingamerica.net/cynthiapineda/chocolatepudding/chocolatepudding.htm