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When was cocoa first made into chocolate?

Cocoa used for making drinks was available in a solid form at a very early point in time. One reference states that in 1674 the English proposed solid 'fingers of chocolate in the Spanish fashion' intended for eating. The phrase Spanish indicates that such products may already have been available in Spain. This was soon followed by chocolate in other forms such as pastilles.

Coenraad Johannes van Houten, in the Netherlands, patented a method of pressing most of the fat out of the cocoa mass in 1828, making possible the production of cocoa butter and cocoa powder. He also thought of a method to enhance the taste and colour during the production process through alkalisation. The availability of cocoa butter led to the making of chocolate, as we know it today.

The English company Fry is usually accredited with making the first eating chocolate. Fry amalgamated cocoa powder with extracted cocoa butter & sugar to make eating chocolate in 1847, sold as 'chocolat delicieux a manger'; Cadbury Brothers were selling a similar product two years later.

Milk chocolate was produced in Switzerland in 1875 by Daniel Peter in collaboration with Henri Nestlé, using Nestle's condensed milk.

References:
CHOCOLATE: AN ILLUSTRATED HISTORY. M. and F. Morton (1986)