Lady Kitty Spencer is seen for the first time since it was revealed she advertises milk in China

Princess Diana’s niece has been seen for the first time since it was revealed she used her royal connections to advertise milk in China.

Lady Kitty Spencer was spotted strolling the streets of New York with her 60-year-old South African-born fiancé Michael Lewis, who reportedly proposed to her just before Christmas.

The model, holding her black gloves in her hands, could be seen showing off her diamond encrusted engagement that is thought to be worth up to £300,000.

At one point, the fashion tycoon shows the socialite something on his phone that appears to amuse the 29-year-old, who has previously modelled for the Italian luxury jewellery brand Bulgari, and has graced the covers of Tatler and Harper’s Bazaar.

It comes just days after the Daily Mail revealed that Earl Spencer’s daughter is promoting milk sales in China.

Lady Kitty Spencer and Michael Lewis in New York

Lady Kitty Spencer was spotted in New York with her 60-year-old South African partner Michael Lewis

Michael Lewis looks at something on his phone while walking alongside his partner Lady Kitty Spencer

Michael Lewis looks at something on his phone while walking alongside his partner Lady Kitty Spencer

The model, holding her black gloves in her hands, could be seen showing off her diamond encrusted engagement that is thought to be worth up to £300,000

The model, holding her black gloves in her hands, could be seen showing off her diamond encrusted engagement that is thought to be worth up to £300,000 

Sales pitch: Lady Kitty Spencer helps launch the Chinese Jersey milk brand in a commercial event at the British Museum

Sales pitch: Lady Kitty Spencer helps launch the Chinese Jersey milk brand in a commercial event at the British Museum

Just after the paper exposed Peter Phillips’ lucrative commercial work in Shanghai, it transpired that she is endorsing Satine Jersey milk.

The Earl Spencer’s daughter posed in a stunning emerald dress with a cup of tea for a photoshoot at the British Museum.

The 29-year-old model, a first cousin to Princes William and Harry, said she was thrilled, telling Chinese journalists: ‘The day of the Royal Family usually begins with a cup of milk or a cup of tea.’

On Tuesday last week, the Mail revealed that Mr Phillips, who with his Canadian wife Autumn sold their 2008 wedding to Hello! magazine, had appeared in two adverts for a Chinese state-owned dairy firm.

Dressed in a black bow tie and dinner jacket, the 42-year-old said in a dubbed Chinese voice ‘I love to drink Jersey Milk’ while a caption read ‘British Royal Family member Peter Phillips’.

He is likely to have been paid tens of thousands of pounds for the adverts, which give the impression of being set in a royal palace.

Lady Kitty Spencer has been promoting a rival brand, Satine, which is sold by Chinese food giant Yili Group.

Lady Kitty Spencer

Lady Kitty Spencer

Lady Kitty Spencer was spotted strolling the streets of New York with her 60-year-old South African fiancé Michael Lewis, just days after it was revealed she was helping sell milk in China

Michael Lewis, pictured right, is understood to have asked Lady Kitty Spencer to marry him just before Christmas

Michael Lewis, pictured right, is understood to have asked Lady Kitty Spencer to marry him just before Christmas

The milk carton is emblazoned with ‘Satine – The British Museum’ and features a sketch based on an 1846 lithograph of Queen Victoria and Prince Albert with their children, titled The Royal Children in the Nursery

Lady Kitty Spencer and Michael Lewis

Lady Kitty Spencer and Michael Lewis

Lady Kitty Spencer was spotted strolling the streets of New York with her 60-year-old South African-born fiancé Michael Lewis, who reportedly proposed to her just before Christmas.

It competes in the growing Chinese market for ‘high end’ milk against Jersey Cattle Fresh Milk, the product that is being marketed by the Queen’s grandson.

The two aristocrats effectively went head to head in a milk marketing war because their rival promotions were both launched in June last year. The rival brands bill themselves as milk from Jersey cows, a key selling-point for Chinese middle-class consumers.

Dozens of photographs were taken of Lady Kitty, whose dress was designed with a nod to Far Eastern couture, at the Satine launch event on June 8.

With the grand backdrop of the British Museum’s marble atrium, Lady Kitty sipped tea while a Chinese woman poured milk from a carton – with the title ‘Satine Jersey Milk British Museum Classic Edition’ – into a jug.

A press release issued by the milk company made great play of her royal connections, saying: ‘Kitty Spencer, niece of the late Princess Diana, made an authentic English breakfast tea with Jersey milk and shared the story of Jersey milk and the British Royal Family.’

On Tuesday, the Mail revealed that Mr Phillips, who with his Canadian wife Autumn sold their 2008 wedding to Hello! magazine, had appeared in two adverts for a Chinese state-owned dairy firm

On Tuesday, the Mail revealed that Mr Phillips, who with his Canadian wife Autumn sold their 2008 wedding to Hello! magazine, had appeared in two adverts for a Chinese state-owned dairy firm

Princess Diana’s niece has joined the Queen’s grandson in exploiting royal connections to promote milk sales in China

Princess Diana’s niece has joined the Queen’s grandson in exploiting royal connections to promote milk sales in China

Lady Kitty, who is not a member of the Royal Family, was quoted as saying: ‘Jersey milk has a close relationship with the British Royal Family. At Buckingham Palace, the official residence of the Queen in London, the Queen’s day begins with drinking a cup of tea.

‘Jersey milk has been enjoyed by the British Royal Family for many years. Jersey milk is considered to be the finest and most special from the United Kingdom.’

The launch event led to gushing articles in the Chinese media about Satine milk and ‘British noble member’ Lady Kitty.

The British Museum received a fee for hosting the event, which it said was ‘commercially sensitive’.

A spokesman said: ‘The British Museum started its brand licensing programme back in 2016 and has an international programme, with select licensee partners in China, the UK, Europe and North America.

‘The press release details the collaboration on this particular product and the role of the British Museum, whereby the design of the packaging for a specific product was inspired by objects in the British Museum’s collection.’

This is a reference to the milk carton that is emblazoned with ‘Satine – The British Museum’ and features a sketch based on an 1846 lithograph of Queen Victoria and Prince Albert with their children, titled The Royal Children in the Nursery. 

There was no comment from Lady Kitty’s agent or from Buckingham Palace at the time.

Mr Phillips had declined to comment. But a source close to him said: ‘As Peter does not undertake any Royal duties and does not receive any income from the tax payer, he is entitled to go about his business and earn a living.’

Read more at DailyMail.co.uk