In a saucepan, over medium heat, bring water, sugar and star anise pods to a boil. Remove the pan from the heat and add the tea bags.
Allow the tea bags to steep and cool to room temperature, about 1 hour.
Discard the star anise pods and the tea bags and whisk in the condensed milk.
Pour into a large pitcher and refrigerate for at least 1 hour or until ready to serve.