I'm originally from the UK and although I generally make one cup at a time with the bag in the cup (I'm the only tea drinker in the house), when I was a kid, we always made a big pot of tea. It was made with either tea bags or tea leaves. I was taught to pour the milk into my cup first and then the tea, not the other way around. No idea why, but it seems to help the tea and milk mix 
I can even remember my Grandma having a big pot of tea on the table with the milk and sugar already added and it was strong tea, which is how I still drink it with a lot of milk, but no sugar. I usually use a mug, but for Sunday dinner (which was actually in the afternoon), it was definitely the proper cups with saucers.
What you usually find in the grocery store is orange pekoe tea I believe, but I'm fond of a type of black tea called Assam. I've been told it's got more of a malty taste and blends well with milk.