Preheat the oven to 350° Fahrenheit. Grease a bundt cake form. Set aside.
Mulled Wine
Combine wine, rum, orange juice, orange zest, cinnamon sticks, cloves, and sugar in a saucepan. Bring to a boil. Simmer for 2-3 minutes. Remove from heat and let cool. Strain mulled wine through a sieve. Cover and set aside.
Cake Batter
Add chocolate chips to a food processor and blend until they look like bread crumbs. Set aside.
In a large bowl and combine butter, sugar, and vanilla extract and beat with an electric mixer on medium-high speed until smooth.
Add eggs one at a time and continue to beat on medium speed. Mix in flour, baking powder, and salt. Continue on low speed and add mulled wine. Fold in chopped chocolate.
Pour batter into the pre-greased cake pan. Bake for 45 minutes. Transfer onto a wire rack to cool.
Icing
In a medium bowl whisk powdered sugar and lemon juice until smooth. Divide the icing in half and add a few drops of mulled wine. Alternatively drizzle both red and white icing over the cooled mulled wine cake.