A refrigerator is provided, including a cabinet formed with at least one refrigerated compartment and a door pivotally mounted to the cabinet via a hollow hinge to selectively open and close at least a portion of the refrigerated compartment. A water heater is mounted on an exterior surface of the cabinet about the hollow hinge and configured to heat water supplied from the refrigerator. A hot water dispenser is positioned on the door that is configured to dispense hot water supplied from the water heater into a receiver vessel, and a hot water conduit is guided through the hollow hinge and extending from the water heater to the hot water dispenser to supply the hot water from the heater to the dispenser. A method of dispensing hot water is also provided. The method utilizes at least two distinct, user-initiated steps to permit the dispensing of hot water.