In a large bowl, use an electric mixer to beat the butter and cream cheese at medium speed until creamy. Gradually add the powdered sugar, beating at low speed until blended. Increase speed to medium, and slowly add milk and vanilla, beating until smooth.
Microwave the chocolate chips in a microwave-safe bowl at MEDIUM 1½ to 2 minutes or until melted and smooth, stirring at 30 second intervals.
Gradually add melted chocolate to mixture; beat until blended and smooth. If the frosting is too soft for piping, cover and refrigerate for a few minutes until it firms up a little bit. Otherwise, spread frosting on top of cupcakes and decorate as desired.
Notes
If you are preparing this recipe as gluten-free, just be sure to use a brand of chocolate that is known to be GF.