A seldom used Irish and UK phrase for leaving the tea bag in the cup when you make a cup of tea. reason for calling it Hobbit tea is cause it is Baggins (bag in) tea.
Jay - "Ally would you like a cup of tea"
Ally - "Yup, make it Hobbit tea"
Jay - "What now?"
Ally - "With the bag in, get it?"
Jay - "Ahhh Baggins, I get it, funny"