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Put water, peppercorns, cloves, cardamom, ginger, nutmeg and a cinnamon stick in a small saucepan. Bring to a boil and boil for at least five minutes.
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Turn off the heat and place tea bags in water. Steep for 5-6 minutes.
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Stir in caramel sauce and vanilla.
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Heat milk in microwave for 15 seconds on medium heat and stir into tea.
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Top with whipped cream and additional caramel sauce if desired.
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Serve immediately.