Start by heating milk, loose leaf tea, and vanilla bean in a small pot or sauce pan over medium heat. Do not boil, but bring to a low simmer and steep for at least 10 minutes. Strain tea out of milk and scrape vanilla bean paste from pod into milk for added vanilla flavor.
Remove from heat and set aside to cool to room temperature (or place in the fridge)
Preheat oven to 350F
Grease and flour two 9" cake pans
Sift dry ingredients (flour, baking powder, tea, and salt) into a large mixing bowl and mix to combine. Set aside dry ingredients.
Using a mixer (or by hand), cream butter and sugar with the paddle attachment on high until light and fluffy.
Reduce speed to medium-low and add eggs one at a time.
Slowly mix in Earl Grey infused milk.
Reduce speed to low and mix in flour mixture, making sure to mix only until smooth and well combined (over-mixing may result in a tougher texture).
Pour cake batter into greased cake pans, tapping pan bottom to create an even top.
Bake for approximately 30 minutes or until a toothpick comes out mostly clean
Set cakes aside to cool as you whip up the frosting.