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Line a large cookie sheet with wax paper.
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Pick out the larger chips out of the bag and set aside.
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Empty your chocolate chips into a glass bowl that is large enough to fit on top of a small sauce pan.
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Fill the sauce pan with enough water to create steam. (Fill about 1/4 full)
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Place the glass bowl of chocolate on the sauce pan.
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Set your burner to a low heat. I suggest level 2.
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Stir frequently as chocolate begins to melt.
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Once melted dip your chips in the chocolate. Use a spoon to evenly spread the chocolate and scrape off excess chocolate.
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Place the chocolate dipped chips on the wax paper lined cookie sheet.
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Once you have completed all your chips, place tray of chocolate dipped chips in the refrigerator for at least 15 minutes or until chocolate has set.