Grate the cocoa. Finely grate the cocoa ball or stick.
Boil the spices. Add the water, cinnamon stick, nutmeg, and salt to a pot. Bring to a boil.
Add the cocoa. Stir in the grated cocoa, then reduce the heat to a simmer. Stir occasionally to prevent the cocoa from sticking to the bottom of the pot.
Simmer the cocoa. Simmer for 6 to 10 minutes, or a little longer if needed depending on how finely the cocoa was grated. The cocoa should break down and become well incorporated into the liquid.
Add the milk and bay leaf. Stir in the milk and add the bay leaf. Continue simmering for another 5 minutes.
Sweeten. Remove from the heat and add your preferred sweetener to taste. I usually use about 1/3 cup condensed milk.
Strain and serve. Strain the cocoa tea for a smoother drink, if desired. Serve warm.