Prepare the Cocoa Mixture: If using cocoa sticks, grate them finely or grind them using an electric grinder. In a small bowl, mix the cocoa powder or grated cocoa stick with 1/2 cup of water to form a smooth paste. Set aside.
Boil Water and Spices: In a medium saucepan, combine the remaining 1 1/2 cups of water, milk, cinnamon stick, bay leaves, cloves, cardamom pods, and freshly grated nutmeg. Bring to a gentle boil over medium heat, allowing the spices to infuse for about 5-7 minutes.
Add Cocoa, Vanilla, and Sugar: Gradually whisk the cocoa paste into the simmering spiced liquid until fully incorporated. Stir in the granulated sugar, adjusting the amount to your desired sweetness.
Simmer and Blend: Reduce the heat to low and let the Cocoa Tea simmer for 5 more minutes, stirring occasionally. For a smoother texture, use an immersion blender or strain the mixture to remove the spices.
Serve Hot: Ladle the Cocoa Tea into mugs or enamel cups. If desired, sweeten further with condensed milk.