Yes - in secondary. Sorry, wait a minute. Back up. A dollar a pound? Give me a phone number for that source and I will tell you more...
Honestly, as I stated, it's in secondary. Chocolate is notorious for being a pain, in that the bitter oils take at least a year to mellow out. So disregard a mead being hot - that is a given. The real situation is that the chocolate doesn't taste good (or even like chocolate, really) for a while.
I've been experimenting with chocolate, however, and tried a few different things. Cocoa nibs seem to be giving me the proper aroma, without much chocolate flavor. And they are less messy. Oh yeah, fermenting chocolate powder? Give it a lot of headspace ... it billows up something fierce.
I have now tried nesquik, cocoa powder, cocoa nibs, and combinations of cocoa powder and cocoa nibs. I like the combo of cocoa powder and nibs, personally. They are all 1 gallon batches, and all aging, so I can't give you a final answer, but ... that's where I stand.