For the glaze, place the sugar, butter, and milk in a small saucepan over medium-low heat and cook, stirring constantly, until the mixture comes to a boil. Boil, stirring constantly, for 1 minute. Remove the pan from the heat and stir in the chocolate chips. When the chips have melted and the glaze is smooth, pour it over the warm cake so it covers the entire surface. The glaze will be thin but will firm up.
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