In a bowl, mix together cheese, sugar, egg, vanilla, salt, and cornstarch until smooth. Mix in chocolate pieces while stirring.

Heat oil in a frying pan. Add batter by the spoonful (keep the latkes small) and fry until golden on both sides.

Remove from pan and drain on paper towels.

Place chocolate in a bowl. Add cream and melt together in microwave or a double boiler until completely melted and smooth.

Serve with latkes.