A coffee maker has a water reservoir, an in-line water heater, a brew basket for receiving coffee grounds, a water passage between the water reservoir and the brew basket, a water level sensor located in the water reservoir, a water level indicator, and a controller in communication with the water level sensor and the water level indicator. The passage passes through the in-line water heater for delivering heated water to the brew basket. The controller activates the water level indicator in response to a signal from the water level sensor. A method of making coffee in the coffee maker includes determining, in the controller, an operating condition for a coffee bean grinder and operating the coffee bean grinder based on the operating condition to grind coffee beans and produce a quantity of ground coffee beans.