In a large mixing bowl, combine the all-purpose flour, granulated sugar, salt, and instant yeast. Mix well to combine.
In a separate bowl, whisk together the warmed milk, melted butter, egg, and vanilla extract.
Gradually pour the wet ingredients into the dry ingredients, mixing until a dough forms.
Knead the dough on a lightly floured surface for about 5-7 minutes until smooth and elastic.
Place the dough in a greased bowl, cover it with a clean kitchen towel, and let it rise in a warm place for about 1 hour or until doubled in size.
Once risen, punch down the dough and roll it out into a rectangle about 1/4 inch thick.
Sprinkle the cocoa powder evenly over the dough, followed by the chocolate chips.
Starting from one long edge, roll the dough tightly into a log. Pinch the seams to seal.
Cut the log in half lengthwise to expose the chocolate filling. Twist the two halves together and shape into a spiral or coil.
Place the twisted dough into a greased baking dish and let it rise for another 30 minutes.
Preheat your oven to 350°F. Bake the babka rolls for 25-30 minutes or until they are set and a toothpick inserted comes out clean.
Allow the rolls to cool slightly before dusting with powdered sugar and serving.