In a medium saucepan, combine the water and granulated sugar. Heat over medium heat, stirring occasionally, until the sugar dissolves completely to create a simple syrup.

Add the cinnamon sticks, cloves, black peppercorns, cardamom pods, star anise, ground ginger, and ground nutmeg to the saucepan. Stir to combine and bring the mixture to a gentle simmer.

Reduce the heat to low and let the spices steep in the syrup for about 15 minutes, ensuring the flavors meld together.

Add the black tea bags to the saucepan and let them steep in the syrup for an additional 5 minutes. Remove the tea bags and discard them.

Remove the saucepan from the heat and stir in the vanilla extract. Let the syrup cool slightly.

Strain the syrup through a fine mesh sieve or cheesecloth into a clean, airtight jar or bottle to remove the spices.

Allow the syrup to cool completely before storing it in the refrigerator. It can be kept for up to two weeks.

To use, mix 1-2 tablespoons of the chai syrup with steamed milk or your favorite tea base to create a delicious chai latte.