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In a medium saucepan, combine the heavy cream, milk, granulated sugar, vanilla extract, milk powder, and cornstarch.
Place the saucepan over medium heat and begin whisking continuously as the mixture warms up.
While the milk mixture is heating, prepare the matcha paste. In a small bowl, combine the matcha powder and hot water. Whisk vigorously until a smooth, lump-free paste forms.
Continue to cook the milk mixture, whisking constantly, until it reduces and thickens significantly. This process is similar to making condensed milk and requires patience.
Once the base has thickened, pour the prepared matcha paste into the saucepan.
Whisk the matcha paste into the thickened milk mixture until it's fully incorporated, smooth, and has a vibrant green color.
Remove from heat and transfer the matcha milk jam to a jar or airtight container. Allow it to cool completely; it will continue to thicken as it cools.
Once cooled and set, serve the jam on toast, pancakes, oatmeal, or your favorite dessert.
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