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The correct recipe for a small iced caramel chai latte involves using 1 scoop of caramel and filling the cup to the 8 oz line with chai latte mix. This formulation ensures that the flavor balance between the caramel and the chai is optimal for a smaller serving size.

In a small iced latte, the 8 oz line indicates the appropriate amount for a single serving, so using this amount prevents the drink from becoming overly sweet or too strong in chai flavor. The single scoop of caramel provides a sufficient level of sweetness and richness, complementing the spiced notes of the chai without overwhelming the overall flavor profile.

Choosing options that call for a greater amount of chai mix or a different serving size would likely disrupt this balance, making the drink either too sweet or far less flavorful, thus steering away from the intended taste experience.