(information gathered from about.com)
Hot chocolate first appeared in the times of the Aztecs. Aztecs used cocoa beans as currency as well as using it in food. The Aztecs made a drink out of roasted cocoa beans. Their version of hot chocolate wasn’t at all like what we drink today, for their version contained chili peppers and wine, and wasn’t sweet at all.
Chocolate was introduced to Europe in the early 1500s. When chocolate was introduced to Spain, they began to serve it hot and sweetened without the chili peppers. The Spanish were protective of their new drink, and it was over a hundred years before the drink spread across Europe. When it hit London in the 1700s the drink became very trendy and people began to drink it daily after their dinners. It was the English who began to serve it with hot milk.
In the mid eighteenth century chocolate evolved past the drinkable form. In Holland, powdered cocoa was introduced. Powdered chocolate was popular because it could mix easier with hot water or milk. Then came chocolate in a candy form, which was made by mixing cocoa butter and sugar together. In 1876, milk chocolate was developed. Ever since, chocolate has been more popular in a solid form than as a drink.