An apparatus includes a body, a removable first container for water for positioning on the body, a boiler within the body receives water from the first container, a heater adjacent to the boiler heats the water in accordance with at least one preparation parameter. The apparatus further includes a removable second container that is a combination milk carafe and boiler for positioning on the body and a separate heater adjacent to the milk carafe and boiler for heating the milk in accordance with at least one preparation parameter. A filter and a dispensing valve are controlled electronically. An interface and display for entering brewing parameters and a microcomputer for the controlling the apparatus.