In a skillet, dry roast the whole spices on low heat for 3-4 minutes until fragrant. Spices are delicate, so it’s highly recommend that you use low heat for this step.
Remove from heat, and let cool to room temperature.
Break the cinnamon sticks into 2-3 pieces. Also break the outer shell of the nutmeg. This will make grinding them easier.
Using a coffee or spice grinder, add the roasted whole spices and grind to a coarse powder. Set aside while you prepare the chai.
Make the Masala Chai:
In a small saucepan, add the water and bring to a boil.
Add the black tea leaves and sugar, and let it come to a full boil.
Now add the milk, and cook for 5-7 minutes while constantly ladling upward and downward.
Once the tea has come to a boil 3-4 times, add the prepared spice mix.
Bring to another boil, and then remove from the heat.
Remove from heat, and cover for 2-3 minutes.
Pour the tea through a tea strainer into mugs and serve immediately.