Given you get better equipment along the way and only the "gifts" can be used simultaneously as opposed to e.g. red and pink gloves or Jasper crown and sorceress hat, I saved almost all the chocolate for pain au chocolats in my latest play-through.
I enchanted the gloves (pink - way better than red) and kept a spare chocolate bar in case I decided to go with the Giant Spoon of Doom, leaving me with 11 pain au chocolats for 6x magic, 4x power and 1x health.
I chose to not enchant the armour because since the non-enchanted knight body armour
already gives you 30% damage resistance, the enchantment in itself only gives you +50% resistance for the -50% damage output, effectively halving both your and your opponent's DPS, and since you need your DPS to be higher than your opponent's in the first place, this is actually a bad deal for you unless you also get the xeno claws.
A great tip for getting early into the castle for pain au chocolats:
As soon as you
have the sponge,
squeeze to run between the horses' legs, getting past the knights quickly with almost no damage taken! To get the armor, you only have to kill one of the knights.