Preheat oven to 375F degrees. Line muffin pan with cupcake liners. Boil the water in a small saucepan. Pour the unsweetened cocoa powder into a medium sized bowl and mix with boiling water until smooth. Allow to cool to room temperature. Whisk the flour, baking powder, and salt in a medium sized bowl. Set aside. In a large bowl, cream the softened butter and sugar until light and fluffy. Add the eggs, one at a time. Add the vanilla extract. Add the flour mixture 1/4C at a time (slowly). Add the cooled cocoa mixture and stir until smooth. Fill each liner 2/3 of the way full with batter. Bake for 15-18 minutes Frosting: Beat softened butter until smooth and creamy. Add powdered sugar, milk, peppermint extract, and food coloring. Once all is blended, stir in the chocolate chips by hand. Frost cooled cupcakes.