Homemade Chocolate Chips

Semi-Sweet and Milk Chocolate, the Simple Way

If you have ever grabbed a bag of chocolate chips, flipped it over, and thought, “Why are there six ingredients I cannot pronounce?”, you are not alone.

We bake a lot. And at some point we decided chocolate chips should not be complicated, expensive, or full of junk we would never keep in our pantry otherwise. Turns out, making your own chocolate chips is shockingly easy and once you do it, it is hard to go back.

These recipes use refined coconut oil and powdered sugar to make smooth, rich chocolate chips that actually taste like chocolate. No dairy unless you want it. No soy. No weird stabilizers. Just ingredients that make sense.

Chocolate Chips - from Scratch

Why Use Refined Coconut Oil?

First, it has no coconut flavor. None. Zero. That is important because chocolate should taste like chocolate, not sunscreen.

Second, it sets up nicely when cool, which gives your homemade chips structure without needing cocoa butter, dairy fats, or additives.

And third, let us be honest. It is a heck of a lot cheaper. Cocoa butter is pricey. Specialty chocolate fats are pricey. Refined coconut oil is affordable, easy to find, and works beautifully. Especially if you bake often or make chocolate in bulk.

Bonus points. It is shelf stable, easy to melt, and forgiving if you are not being picky about temperatures.

Why Powdered Sugar?

Because life is short and grainy chocolate is annoying.

Powdered sugar blends right into the melted oil and cocoa. No crunch. No waiting for sugar to dissolve. No sandy texture. You end up with chocolate that feels smooth and finished, not homemade in a bad way.

If you can find powdered sugar without cornstarch, even better. But either way, it works.

Semi-Sweet Chocolate Chips

Refined Coconut Oil + Powdered Sugar

Yield

• 24 ounces finished chocolate

• About 3 cups of chocolate chips

Ingredients

• 340 g refined coconut oil (12 oz)

• 170 g unsweetened cocoa powder (6 oz)

• 165 g organic powdered sugar (5.8 oz)

• 1½ teaspoons vanilla extract

• ¾ teaspoon fine sea salt

Optional but recommended:

• 1½ teaspoons sunflower lecithin for smoother texture and better stability

Instructions

1. Gently melt the refined coconut oil using a double boiler or very low heat.

2. Whisk in cocoa powder until smooth and glossy.

3. Sift and whisk in powdered sugar and salt until fully blended.

4. Stir in vanilla extract and sunflower lecithin if using.

5. Pipe into chips, spoon into molds (we used molds because why make it harder on yourself?), or spread thin and chop after setting.

6. Refrigerate 15 to 25 minutes until firm.

Chocolate in Chocolate Chip Molds

Milk Chocolate Chocolate Chips

Creamy, Smooth, and Classic

Milk chocolate is slightly sweeter, softer, and melts more easily than semi-sweet chocolate. Adding milk powder gives that familiar creamy flavor while still keeping the recipe simple and customizable.

Yield

• 24 ounces finished chocolate

• About 3 cups of chocolate chips

Ingredients

• 310 g refined coconut oil (11 oz)

• 120 g unsweetened cocoa powder (4.2 oz)

• 180 g organic powdered sugar (6.3 oz)

• 60 g whole milk powder (2.1 oz)

• 1½ teaspoons vanilla extract

• ¾ teaspoon fine sea salt

Optional but recommended:

• 1½ teaspoons sunflower lecithin

Instructions

1. Melt refined coconut oil gently using low heat.

2. Whisk in cocoa powder until smooth.

3. Sift together powdered sugar, milk powder, and salt, then whisk into the chocolate base until lump-free.

4. Stir in vanilla and sunflower lecithin if using.

5. Form chips or chunks as desired.

6. Refrigerate 20 to 30 minutes until fully set.

Messy but delicious

Baking and Storage Tips

Homemade coconut-oil-based chocolate behaves differently than commercial chips.

• Chips soften and melt faster

• Freeze chips before adding to cookie dough

• Best baked at 350°F or lower

• Expect softer chocolate pockets rather than rigid chips

Store finished chips in an airtight container in the refrigerator or freezer. Coconut oil melts around 76°F.

Easy Variations

• Darker chocolate: Reduce powdered sugar by 20 to 30g

• Creamier milk chocolate: Increase milk powder slightly

• Dairy-free milk style: Use coconut milk powder instead of dairy milk powder

• Firmer snap: Add a small amount of extra cocoa powder and lecithin

Your finished Chocolate Chips

Final Thoughts

Once you make your own chocolate chips, it is hard to go back to the bagged kind. You get better flavor, lower cost, cleaner ingredients, and complete control over sweetness and texture.

Whether you prefer semi-sweet or milk chocolate, these recipes give you a dependable base you can tweak to fit your kitchen, your budget, and your baking style.