In a medium saucepan or pot, combine the milk and water. Bring to a gentle boil at medium-high heat. The milk and water is very prone to bubbling over, so it must be watched. Once the mixture boils, turn off the heat and add the tea and spices, whisking or stirring constantly. If the chai shows any signs of boiling over, remove it from the heat until it has calmed down, then return it to the warm burner. Let the tea and spices steep for at least five minutes, until the chai turns a caramel color, then ladle out individual servings. Add sugar to taste and enjoy.