Prepare the strawberry sauce: Place 1 cup sliced strawberries in a large bowl and mash thoroughly. Stir in remaining 1 cup sliced strawberries, xylitol (or sugar) and vanilla until combined. Let strawberry sauce sit 15 minutes.
Meanwhile, prepare the french toast: Place milk and chocolate chips in a small saucepan and slowly melt over medium-low heat until mixture is smooth, stirring occasionally. Remove from heat and cool slightly.
In a shallow bowl, whisk eggs, coffee, and vanilla until smooth. Quickly whisk in melted chocolate mixture until combined.
Heat a nonstick skillet or griddle to medium-high heat. Working in batches, dip both sides of bread in egg mixture then place on hot skillet. Cook french toast on each side 1-1/2 to 2 minutes or until golden. Remove to a serving plate and repeat step 4 with remaining bread and egg mixture.
Serve french toast hot with smashed strawberry sauce.