I was going to search on this topic this week...a friend of mine got our 3 yo DD a Schylling Porcelain set that comes in a picnic basket but I remember discussions here on Schylling & their safety records with paint recalls, lead etc. I fell in love with one of their tin sets last year & didn't buy it after reading something here or checking healthytoys-can't remember which.
I think I might return the gift.
She is obsessed with setting up picnics all over the house so it is perfect, but I don't know I can trust their toys for drinking out of. I might just hunt for a cute little picnic basket she can put stuff in herself.
That being said, I know you don't want plastic, but we LOVE our Green Toys recycled plastic tea set. It's not "tiny" but it is definitely toddler sized. She can play with real water, bring it in the tub, bring it outside...and I know it's safe which is huge for me.
We also have the Plan Toys wooden set. It is ADORABLE & tiny but it is wood so I worry when she plays with real water in it. I have let her, but definitely not tea or juice.
As you can see, we have a DD who LOVES tea sets & kitchen play. lol