Preheat oven 350°F. Prepare muffin pan with baking cups.

In medium bowl, combine 1 cup flour, baking powder and salt.

In large bowl, beat sugar and butter with electric mixer until light and fluffy. Add eggs one at a time, mixing after each addition. Add milk, unsweetened chocolate and vanilla; beat until well combined. Add flour mixture and beat until just incorporated. Fill each baking cup 1/3 full. Drop a piece of milk chocolate onto the batter; reserve remaining chocolate. Spoon remaining batter into pan until cup is 2/3 full.

Bake 18-22 minutes or until toothpick inserted in center comes out clean. Cool in pan on cooling grid 8 minutes. Remove cupcakes from pan. Cool completely before icing.

For icing, beat meringue powder, cold water and half of remaining sugar in large bowl with electric mixer on high speed 5 minutes. Gradually add remaining sugar and continue to beat 5 minutes or until icing holds stiff peaks. Spread or pipe over cooled cupcakes.

Preheat broiler. Broil cupcakes 2-3 minutes or until icing browns lightly. Crush one graham cracker into crumbs. Break remaining graham crackers into pieces. Sprinkle crumbs over icing; garnish with remaining graham cracker pieces and chocolate pieces.