Place all ingredients in a spice grinder or food processor and grind to a fine powder. Sift powder into a bowl. Store in an airtight container.
For the Tea
In a saucepan over high heat, combine milk and water. Bring to a boil.
Lower the heat to medium, add tea leaves and chai masala and boil for 1 minute. Add the sugar. When it comes to a boil again, lower the heat to low and simmer for 2-3 minutes.