Heat oven to 350 degrees. Grease and flour two 23 cm round cake pans. In large bowl, combine cream cheese, half c butter, vanilla and peppermint extracts; blend until smooth. Ad powdered sugar alternately with hot water, beating until smooth. Blend in chocolate. In another large bowl, combine 2 c of the frosting mixture and quarter c butter; blend well. Beat in eggs, one at a time, beating well after each addition. Lightly spoon flour into measuring cup; level off. Ad flour, baking soda, salt and milk; beat until smooth. Pour batter evenly into greased and floured pans. Bake at 180ºC or 30 to 40 minutes or until toothpick inserted in the center comes out clean. Cool 5 minutes; remove from pans. Cool completely. To assemble cake, place one layer, top side down, on serving plate; spread with about quarter of frosting. Top with second layer, top side up. Spread sides and top of cake with remaining frosting. Store in refrigerator.