Grate the chocolate into fine pieces.
Add water to the pot along with cinnamon, nutmeg, and salt, and bring to boil
Add chocolate and stir it in.
Lower the heat to a simmer. Continue to stir occasionally to make the chocolate pieces not stick to the pot.
Simmer for about 6 to 10 minutes. It might need to go longer depending on the grated chocolate thickness. We want it to dissolve.
Add the milk and bay leaf to the pot and continue simmering for another 5 minutes.
Add sweetener to taste (I used about 1/3 cup of condensed milk)
Strain if you wish. It is not a must-do.