| To make dough: In large bowl, combine 1 cup flour, sugar, cocoa powder, undissolved yeast and salt. Heat milk, butter and water until very warm (120 to 130?F). Gradually add to dry ingredients; beat 2 minutes at medium speed of electric mixer, scraping bowl occasionally. Add egg, vanilla and 1/2 cup flour; beat 2 minutes at high speed, scraping bowl occasionally. With spoon, stir in enough remaining flour to make soft dough.
Knead on lightly floured surface until smooth and elastic, about 4 to 6 minutes. Cover; let rest 10 minutes.
Divide dough in half. For body, knead chocolate morsels into 1 half; form into ball. Place on bottom end of greased large baking sheet; flatten to make 5-inch round.
For head, remove 1/3 of remaining half; form into ball. Place on pan above body; flatten slightly, pinching to attach. For nose, pinch off 1/2-inch ball from remaining dough; place on center of head.
Divide remaining dough into 4 equal pieces; roll each to form 6-inch rope. For arms, arrange 2 ropes across body; attach by tucking one end of each under body.
Shape remaining ropes into ears; arrange above head. Attach by tucking one end of each under head. Cover; let rise in warm, draft-free place until doubled in size, about 30 to 45 minutes.
Bake at 350?F for 45 to 50 minutes or until done, covering with aluminum foil after 20 minutes to prevent excess browning. Remove from pan; cool on wire rack. Decorate as desired.