Preheat the oven to 350° Fahrenheit. Grease a bundt cake form. Set aside.
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.
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. Add mulled wine and beat on low speed. Fold in chopped chocolate.
Pour batter into the pre-greased cake pan. Bake for 45 minutes. Transfer onto a wire rack to cool completely.
In a medium bowl whisk powdered sugar and lemon juice until smooth and creamy. Drizzle icing over the Mulled Wine Cake. Serve and enjoy.