I believe I may have found a great source for brewing my own Chai. Harney and Sons Tea Company sells a loose Indian Spice Tea. Check out their home page - www.harney.com. I ordered my first batch from their page and followed up with a call to their infamous Harney Tealine (800-Tea-Time). I had a delightful conversation with John Harney directly (I was so impressed that the founder of the company actually answers the phone). He gave me some great tips for Chai. He recommends steeping the Indian Spice Tea for a good five minutes and then adding your boiling milk. He suggests boiling the milk in the microwave so you avoid scalding it. He says it's great. I can't wait to test it out.
Also, for anyone in the Norman, Oklahoma area - you can get a good cup of Chai at Cafe Plaid on campus corner. They heat it up in an expresso coffee steamer. I have been asked several times if I would like it cold - I can't imagine cold Chai. Just FYI - Cafe Plaid is the newest project from Harold Powell, the owner of Harold's Clothing Company. Great atmosphere for a good cup of Chai.