Doing it the Indian way, start with half and half of water and milk and start to boil. You can also add a piece of ginger if you want a flavor.
Once warm add some loose tea - orange pekoe is a pretty standard one you can find in any Indian store.
Watch it carefully as it may boil over!
Boil it until the color is right for your taste. Then strain out the tea leaves, add some sugar and ready for chai time!