Systems and methods are described for heating engine coolant by transferring heat from an exhaust flow to the engine coolant via a heat exchanger positioned in an exhaust gas heat recovery line coupled to the EGR cooler responsive to an EGR valve position. In one particular example, a branching pathway of the EGR cooler is positioned downstream of the EGR cooler and allows exhaust gas to be routed to the EGR cooler and/or exhaust gas heat exchanger based on the EGR valve position, which allows for control of the amount of heat transferred to the engine coolant as well as exhaust gas recirculation into the engine. With this arrangement, a cabin temperature of a hybrid vehicle may be increased as quickly as possible under cold start conditions to allow the engine to be quickly turned off after heating the vehicle cabin.