In a small saucepan, bring water to boiling. Remove from heat. Add loose tea or tea bags. Cover and let steep for 5 minutes. Strain brewed tea into a large saucepan; discard loose tea or tea bags.
Stir sugar and cocoa powder into tea, stirring to dissolve sugar. Bring to boiling; reduce heat. Add milk, vanilla, cinnamon, the 2 teaspoons ground nutmeg, cardamom, and almond extract. Cook and stir over medium heat until mixture is heated through (do not boil). Remove from heat.
To serve, pour hot mixture into warm mugs. Top each serving with whipped cream and additional nutmeg. Makes 8 to 10 servings.