Melt the chocolate in a saucepan over very low heat, stirring constantly.
Stir in the condensed milk and the milk. Heat thoroughly.
Transfer to a fondue pot and keep warm.
Suggested dippers: any kind of fruit -- bananas are especially delicious and strawberries of course. Raspberries struggle to stay on the skewers, but probably no one will mind much if they're swimming in the fondue. Marshmallows are a treat for the sweet-tooth. Grapes, kiwis, orange slices, apple slices, pineapple chunks. . . go crazy.
And you can always try vanilla wafers, waffle sticks, Oreos, shortbread, pound cake, angel food cake. We especially like dipping our fingers into the fondue...but usually wait until everyone else isn't looking.
This fondue has a tendency to thicken if left too long. If that happens, add a bit of milk and stir.