In heavy saucepan, combine chocolate and milk. Cook over low heat, stirring constantly until chocolate is melted; remove from heat. Serve warm in fondue pot, surrounded by fruit and cake for dipping.
For dipping in Fondue-
apple slices, orange or tangerine sections, seedless green grapes, pineapple chunks, bananas, marshmallows, squares of pound cake or angel food cake, etc.