In a small saucepan, heat the whole milk, heavy cream, white chocolate chips, and vanilla extract on a medium-low setting. Whisk continuously, making sure that the chocolate melts but does not burn.
Add pink food dye until desired color is achieved. Remove from heat.
Line rims of mugs with tubed frosting. Pour a small amount of the colored granulated sugar onto a flat plate. Turn the mug upside down and lightly press the frosting-covered rims into the granulated sugar. Do not press too hard.
Pour the hot chocolate into the mugs and top with whipped cream, marshmallows, sprinkles, candies, and a large lollipop.