How to redirect output to a text file and the console (cmd) window at the same time?

Powershell 2.0 comes with the Tee-Object cmdlet which does exactly that. If you're using Windows 7, it comes with Powershell 2.0 installed. If you're using an older version of Windows, Powershell 2.0 is available for download.

The benefit of Powershell is that it can run the commands that cmd can as well.

Example:

dir | Tee-Object -file c:\output\dir.txt

There's a good answer for an identical question on StackOverflow

In summary, find a Win32 port of the Unix tee command.