Start by brewing a strong chai tea with your favorite tea bags in hot water, letting it steep until the aroma fills the kitchen with cozy, autumn vibes. Once brewed, let it cool completely so it’s ready to mix into the batter.
Preheat your oven to 350°F (175°C) and prepare an 8-inch round or square pan by greasing it and lining it with parchment.You can press the parchment down and lightly grease the sides too, it makes lifting the cake out a breeze.
In a medium bowl, whisk together the flour, baking powder, baking soda, and your chai spice mix of cinnamon, ginger, cardamom, and allspice. This helps the spices spread evenly throughout the cake, so each bite has a little warm chai magic.
Combine the softened salted butter and sugars in a large bowl, whipping for 2–3 minutes until the mixture is smooth, fluffy, and slightly airy. Scraping down the bowl once or twice makes sure all the butter is whipped in, which gives the cake that tender, soft crumb we love.
Incorporate the egg, beating until smooth, then fold in the vanilla extract. Gradually fold in the cooled chai tea and sour cream, which keeps the cake moist and adds a gentle, balanced tang.
Gently fold in the dry ingredients in batches until just combined. Don’t worry if a few streaks of flour remain, overmixing can make the cake dense, and we want it light and tender.
Transfer the batter to the prepared pan, spread it evenly, and bake for 22–24 minutes, or until a toothpick inserted in the center emerges with a few moist crumbs. Since every oven is slightly different, it’s smart to check a couple of minutes early. Let the cake cool in the pan briefly, then transfer it to a wire rack so it cools evenly without becoming soggy.
Let the cake cool, then blend the cream cheese and butter together until perfectly smooth and creamy. Mix in the powdered sugar, then add a splash of milk and fold in your spices. Add the milk gradually to get a spreadable frosting that’s creamy without being runny.
After the cake has fully cooled, evenly layer the frosting over the top. Slice into generous pieces, serve alongside your favorite cup of tea, and enjoy.