A spiced masala chai cake topped with an addicting sweet and savory pistachio streusel makes for a perfect special occasion dessert.

Masala chai sponge cake pairs perfectly with a chai-infused buttercream and a sweet and subtly savory pistachio streusel.
I’ve been thinking about making this cake for so long now! Ever since I made the pistachio streusel for my St. Patrick’s Day trifle, I’ve had this sweet and spiced masala chai cake in the back of my mind.
I’m very fortunate to know two very talented food entrepreneurs who helped make this cake possible. I used an incredible chai masala from my friend Poonam, who runs Poonam’s Pantry, and garam masala from my friend who runs Dil’s.

This combination came to fruition when my husband was thinking of ways to showcase Dil’s garam masala, and he read about adding it to chai. When we tried it, we fell in love with the combination. It helped solidify my idea for the masala chai sponge cake. I knew I wanted a masala chai sponge cake, but I also wanted to incorporate the more savory, warm flavor of garam masala. As I thought of ways to bring the two together, my mind went back to the pistachio streusel. Because the cake is so sweet, the streusel–spiced lightly with garam masala–adds a lovely, warm, subtly savory flavor that ties everything together.
The finished result is a cake that you won’t be able to get enough of. I love the crunchy texture of the pistachios against the creamy frosting and moist chai-spiced sponge cake. It really is all my favorite things wrapped up in a single bite. Perfection!

How to make this chai masala cake
It requires a bit of time, but it’s so worth the effort, I promise. There are three main components to the dish: the sponge cakes, the frosting, and the streusel. I’ll break down each step of the process below.
What you need
- Sponge cake: The sponge cake is made with eggs, sugar, and flour. You’ll steep masala chai–black tea combined with spices–in milk and add it to the sponge cake. This gives the sponge cake the flavor of black tea and flavorful spices.
- Chai buttercream frosting: The frosting is made with butter, powdered sugar, vanilla extract, and chai masala powder. The powder doesn’t contain any tea, so you’re just getting the flavor of chai masala without the tea.
- Pistachio streusel: The pistachio streusel is made with pistachios, butter, flour, brown sugar, honey, garam masala, and a pinch of salt.

What’s the difference between chai masala and masala chai?
Chai means “tea” and masala means “spices” or “mixture of spices”. So I remember it by thinking of the order they come in. Chai masala would be tea spices (so just the spices used to flavor tea), and masala chai translates to “spiced tea,” so it speaks more to the finished product. To make this recipe, you’ll need, ideally, the spiced tea as well as the spice mixture on its own to flavor the frosting. While I strongly recommend buying the masala chai and the chai masala from Poonam’s Pantry, below are a few places where you can buy both the mixtures you need.
- Masala chai: Kolkata, Rishi, Blue Lotus (this is instant, so it will dissolve into the milk; no need to strain it), or Vahdam.
- Chai masala: Spicewalla, Laxmi, or Rani.
Masala chai sponge cakes

- Step 1: Heat the milk in the microwave until bubbly. Add the masala chai and let steep for about 5 minutes before straining into a bowl. If you lose some of the milk through straining, add enough to get back to ¼ cup total. Refrigerate the milk until needed.







- Step 2: Make the sponge cakes. Start by beating the egg yolks until thick and pale yellow. Incrementally add sugar, beating after each addition. Add the spiced milk and then add cake flour. Mix until combined.




- Step 3: Beat egg whites until stiff peaks form. Fold the egg whites into the batter and then transfer it between two round cake pans. Bake for about 30 minutes or until a toothpick inserted into the center comes out clean. Transfer the cakes to a wire rack and let cool for at least an hour.
Chai masala buttercream frosting


- Step 3: Make the frosting by blending the chai masala with butter, powdered sugar, and vanilla extract until smooth. Add heavy milk to reach a creamy consistency.
Pistachio streusel



- Step 4: Make the pistachio streusel. I like to put the pistachios in a gallon storage bag and thwack them with a heavy-bottomed pan or rolling pin until crushed. Then, I just add the remaining ingredients for the streusel and use my hands to create a crumbly mixture. Transfer it to a baking sheet and then pop it into the oven for about 10 minutes. Remove from the oven and let cool completely.
Assembling the cake






- Step 5: Now it’s time to frost the cake. Place one of the sponge cakes on a baking sheet and coat it with a thin layer of frosting. Place the second cake on top and smooth more frosting on top. If you want to do a crumb coat, you can, but I’m not that fussy about it. I just frost it because I’m too impatient to wait for a crumb coat. After you finish coating the entire cake with frosting, pile the pistachio streusel on top. I like the press the streusel into the top of the cake to ensure it adheres to the frosting. You want a pretty even layer of streusel!


Then you’re ready to serve it up! Cut the cake into slices and enjoy.

Masala Chai Cake
Ingredients
Masala chai sponge cake:
- ¼ cup whole milk
- 2 teaspoons masala chai (see Note 1)
- 4 eggs (yolks and whites separated)
- 1 cup sugar
- 1 cup cake flour
- 1½ teaspoons baking powder
Chai masala buttercream:
- ½ cup unsalted butter (1 stick, room temperature)
- 2 cups powdered sugar (sifted)
- 2 teaspoons vanilla extract
- 2 teaspoons chai masala powder (see Note 1)
- 3 tablespoons heavy cream
Garam masala pistachio streusel:
- 1 cup raw pistachios
- 3 tablespoons butter (room temperature)
- 3 tablespoons all-purpose flour
- 2 tablespoons brown sugar
- 1 tablespoon honey
- 1 teaspoon Dil’s Premium Garam Masala (see Note 2)
- Pinch salt
Instructions
Make the sponge cakes:
- Preheat the oven to 325ºF. Grease the bottoms of two 9-inch cake pans or line the bottoms of the cake pans with parchment paper. Leave the sides of the cake pans ungreased.
Prepare the chai milk:
- Transfer the milk to a heat-proof glass measuring cup. Microwave for 30 to 45 seconds until bubbly and hot. Be careful not to scorch the milk.
- Add the masala chai mixture and whisk to incorporate. Let stand for 5 minutes. Strain the milk through a sieve into a small bowl. Refrigerate until needed. See Note 3.
Beat the egg yolks:
- Add the egg yolks to a large mixing bowl and beat with an electric mixer until pale and thick; they will increase in volume. This takes about 5 minutes of consistent mixing.
- Add the sugar, 2 tablespoons at a time, mixing well after each addition. Add the spiced milk and mix until incorporated.
- Sift the flour and baking powder into the egg yolks.
Prepare the egg whites:
- Beat the egg whites until stiff peaks form.
Finish the batter:
- Fold the egg whites into the batter and stir gently until combined.
Bake the sponge cakes:
- Divide the batter between the prepared cake pans. Transfer to the oven for 25 to 30 minutes or until the sponge cake is firm to the touch and a toothpick inserted into the center of the cake comes out clean.
Cool the sponge cakes:
- Remove the sponge cakes from the oven and let cool for 5 minutes. Use a butter knife or a thin spatula to run around the sides and bottom of the pan to separate the cake from the pan. Flip the pan over onto a wire rack and lightly tap the bottom of the pan to release the cake if needed.
- Allow the sponge cakes to cool for at least 1 hour. Once cool, you can wrap them in plastic wrap until you’re ready to begin the cake.
Make the frosting:
- Beat the butter until smooth. Add the vanilla extract and chai masala. Add half the sifted powdered sugar and mix until combined, about 2 to 3 minutes. Add the rest of the powdered sugar and continue mixing until smooth, about 3 to 5 minutes. Add the heavy cream and continue mixing until a creamy consistency is met. Add more cream if needed.
Assemble the cake:
- Place a sponge cake on a cake stand and add a heaping tablespoon of the frosting. Smooth it out and place a second sponge cake on top. Add two heaping tablespoons of frosting on top and smooth it out with an offset spatula.
- Use the remaining frosting around the sides of the cake, smoothing it out with an offset spatula. Cover the cakestand with a cloche and prepare the streusel.
Make the garam masala pistachio streusel:
- Preheat the oven to 375ºF.
- Place the pistachios in a gallon storage bag and use a heavy-bottomed pan or rolling pin to crush them. To the bag, add butter, flour, brown sugar, honey, garam masala, and a pinch of salt. Close the bag and use your hands to combine all of the ingredients into a crumbly mixture.
- Pour the mixture onto a baking sheet. Transfer to the oven for 8 to 10 minutes. Remove and transfer to a bowl. Allow the pistachios to cool completely.
Finish the cake:
- Place the streusel on top of the cake and use your hands to press it into a thick top layer that adheres to the frosting.
To serve:
- Slice the cake into pieces and enjoy!
Notes
- Masala chai: Kolkata, Rishi, Blue Lotus (this is instant, so it will dissolve into the milk; no need to strain it), or Vahdam.
- Chai masala: Spicewalla, Laxmi, or Rani.






