Jupiterimages/Goodshoot/Getty Images. Chai is an Indian spiced milk and tea drink that can be served either hot or cold. Other names for chai tea are chai latte and masala chai. It is traditionally made with a variety of spices that include cardamom, cinnamon and cloves. These spices are stewed and then steeped with black tea. Depending on your taste, there are several different spices that you can put in your chai.