This page uses content from Wikipedia. The original article was at Steeping.
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As applied to tea, steeping refers to saturation in a liquid solvent (specifically water) to extract a soluble ingredient, where the solvent is the desired product. Tea is prepared for drinking by steeping the leaves in heated water to release the flavor and nutrients. Herbal teas may be prepared by decoction, infusion, or maceration.

A longer article, including other uses of the term, is found on Wikipedia.