An internally-cooled compressor is provided including a casing and a diaphragm disposed in the casing. The diaphragm includes a diaphragm box defining a plurality of box channels and a bulb defining a plurality of bulb channels. A plurality of return channel vanes connect the diaphragm box and bulb in fluid communication, such that each return channel vane defines a plurality of return vane conduits coupled in fluid communication with the plurality of box channels and the plurality of bulb channels thereby forming a section of a cooling pathway. The cooling pathway is configured such that a cooling agent introduced from an external coolant source into the diaphragm box and flowing through a box channel flows through a return vane conduit into and through a bulb channel and back through another return vane conduit into another box channel before flowing back to the external coolant source.