A beverage making apparatus including at least a beverage producing portion, a controllable by-pass water system, and at least one of a sweetener system or flavoring system in which the sweetener system and/or flavoring system controllably mixes a sweetener ingredient and/or flavoring ingredient with water external to the housing without mixing in a confined structure. A method for producing a beverage is provided including at least the steps of: providing a beverage making apparatus; providing a water dispensing system; providing at least one of a sweetener dispensing system and flavoring system; and controllably dispensing water and at least one of sweetener and flavoring externally of the apparatus for combination with beverage produced by the beverage making apparatus.