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As for now, chocolate is not in Minecraft. But you can install mods to add chocolate.
You cannot make chocolate in default minecraft. If you are trying to craft cookies the recipe is 2 wheat on the sides and a cocoa bean in the middle.
The ender dragon drops it when defeated
Simply throw it, you may have to throw many before you get a chicken though.
Sugar in minecraft is used to make a cake but you also need 3 buckets of milk and 1 egg when you have made the cake you can eat it to gain your health. Also, in 1.4.2, if you combine sugar, an egg, and a pumpkin together, you will get pumpkin pie.