Sprinkle the sugar into a saucepan, add a tbsp of water. Keep on low flame, swirling the pan occasionally, till the sugar melts and caramelizes.

As soon as the sugar gets a good amber color, add the water and bring it to heat. Add the tea powder and allow it to boil till strong.

Add the milk and allow it to brew till done. Switch off, add the vanilla.

Strain the chai and serve hot with some biskoot!