Gen3, Embedded Cooling, promises to revolutionize thermal management of advanced microelectronic systems by eliminating the sequential conductive and interfacial thermal resistances which dominate the present 'remote cooling' paradigm. Single-phase interchip microfluidic flow with high thermal conductivity chips and substrates has been used successfully to cool single transistors dissipating more than 40kW/sq cm, but efficient heat removal from transistor arrays, larger chips, and chip stacks operating at these prodigious heat fluxes would require the use of high vapor fraction (quality), two-phase cooling in intra- and inter-chip microgap channels. The motivation, as well as the challenges and opportunities associated with evaporative embedded cooling in realistic form factors, is the focus of this paper. The paper will begin with a brief review of the history of thermal packaging, reflecting the 70-year 'inward migration' of cooling technology from the computer-room, to the rack, and then to the single chip and multichip module with 'remote' or attached air- and liquid-cooled coldplates. Discussion of the limitations of this approach and recent results from single-phase embedded cooling will follow. This will set the stage for discussion of the development challenges associated with application of this Gen3 thermal management paradigm to commercial semiconductor hardware, including dealing with the effects of channel length, orientation, and manifold-driven centrifugal acceleration on the governing behavior.